XP vs Wacom

XP Inc. (XP) and Wacom Co., Ltd. (Wacom) are two leading companies in the technology sector, each specializing in different areas of expertise. XP is a Brazilian financial services company offering investment products and services, while Wacom is a Japanese tech company known for its innovative digital drawing tablets and styluses. Both companies have seen significant growth in recent years, but their market performance and stock values differ due to their unique business models and target markets.

XP or Wacom?

When comparing XP and Wacom, 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 XP and Wacom.

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. XP has a dividend yield of 4.16%, while Wacom has a dividend yield of 2.7%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. XP reports a 5-year dividend growth of 0.00% year and a payout ratio of 82.85%. On the other hand, Wacom reports a 5-year dividend growth of 0.00% year and a payout ratio of 56.36%.

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 XP P/E ratio at 12.63 and Wacom's P/E ratio at 20.38. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. XP P/B ratio is 2.71 while Wacom's P/B ratio is 3.04.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, XP has seen a 5-year revenue growth of 5.75%, while Wacom's is 0.41%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with XP's ROE at 21.42% and Wacom's ROE at 13.69%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $17.48 for XP and $4.01 for Wacom. Over the past year, XP's prices ranged from $15.24 to $27.02, with a yearly change of 77.33%. Wacom's prices fluctuated between $3.56 and $4.90, with a yearly change of 37.53%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.