YONEX vs Li Ning Which Is More Profitable?

YONEX and Li Ning are two well-known sports equipment companies that have made a mark in the sporting goods industry. YONEX, a Japanese brand known for its high-quality badminton and tennis products, has a strong presence in the global market. Li Ning, a Chinese brand founded by Olympic gold medalist Li Ning, specializes in sports apparel and footwear. Both companies have seen fluctuations in their stock performance due to various factors such as market trends, competition, and economic conditions. This article will compare and analyze the stocks of YONEX and Li Ning to provide insights for investors looking to make informed decisions in the sports industry.

YONEX or Li Ning?

When comparing YONEX and Li Ning, 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 YONEX and Li Ning.

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. YONEX has a dividend yield of 0.57%, while Li Ning has a dividend yield of 0.84%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. YONEX reports a 5-year dividend growth of 12.47% year and a payout ratio of 0.00%. On the other hand, Li Ning reports a 5-year dividend growth of 0.00% year and a payout ratio of 47.33%.

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 YONEX P/E ratio at 20.07 and Li Ning's P/E ratio at 335.32. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. YONEX P/B ratio is 2.86 while Li Ning's P/B ratio is 39.15.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, YONEX has seen a 5-year revenue growth of 0.93%, while Li Ning's is -0.90%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with YONEX's ROE at 15.29% and Li Ning's ROE at 12.00%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥2092.00 for YONEX and $54.30 for Li Ning. Over the past year, YONEX's prices ranged from ¥1062.00 to ¥2367.00, with a yearly change of 122.88%. Li Ning's prices fluctuated between $39.26 and $81.38, with a yearly change of 107.28%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.