Xerox vs Ricoh Which Is More Profitable?

Xerox and Ricoh are two prominent companies in the imaging and printing industries, each with their own strengths and market presence. Both companies have faced challenges in recent years due to changes in technology and consumer preferences. Xerox has focused on innovation and digital transformation to maintain its competitive edge, while Ricoh has diversified its business to offer a range of services beyond traditional printing. Investors looking to compare Xerox and Ricoh stocks will need to consider factors such as market performance, financials, and long-term growth potential.

Xerox or Ricoh?

When comparing Xerox and Ricoh, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Xerox and Ricoh.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Xerox has a dividend yield of 11.39%, while Ricoh has a dividend yield of 0.95%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Xerox reports a 5-year dividend growth of 0.00% year and a payout ratio of -10.38%. On the other hand, Ricoh reports a 5-year dividend growth of 3.83% year and a payout ratio of 50.54%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Xerox P/E ratio at -0.80 and Ricoh's P/E ratio at 25.65. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Xerox P/B ratio is 0.72 while Ricoh's P/B ratio is 1.03.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Xerox has seen a 5-year revenue growth of 0.17%, while Ricoh's is 0.22%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Xerox's ROE at -57.57% and Ricoh's ROE at 4.21%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $8.54 for Xerox and $11.68 for Ricoh. Over the past year, Xerox's prices ranged from $8.02 to $19.78, with a yearly change of 146.63%. Ricoh's prices fluctuated between $6.96 and $12.03, with a yearly change of 72.84%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.