Zuken vs Altium Which Performs Better?

Zuken and Altium are both prominent players in the electronic design automation industry, offering software solutions for designing and manufacturing electronic products. Zuken has a long-standing presence in the market, catering to a wide range of industries with its advanced design tools. On the other hand, Altium is known for its user-friendly and affordable software solutions, appealing to a broader customer base. Both companies have experienced significant growth in recent years, with their stocks reflecting their respective successes in the industry.

Zuken or Altium?

When comparing Zuken and Altium, 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 Zuken and Altium.

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. Zuken has a dividend yield of 1.56%, while Altium has a dividend yield of 0.67%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Zuken reports a 5-year dividend growth of 15.81% year and a payout ratio of 0.00%. On the other hand, Altium reports a 5-year dividend growth of 14.87% year and a payout ratio of 81.10%.

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 Zuken P/E ratio at 22.00 and Altium's P/E ratio at 68.93. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Zuken P/B ratio is 2.11 while Altium's P/B ratio is 18.96.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Zuken has seen a 5-year revenue growth of 0.48%, while Altium's is 0.84%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Zuken's ROE at 9.81% and Altium's ROE at 27.99%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥3730.00 for Zuken and A$68.30 for Altium. Over the past year, Zuken's prices ranged from ¥3020.00 to ¥4855.00, with a yearly change of 60.76%. Altium's prices fluctuated between A$36.04 and A$68.33, with a yearly change of 89.59%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.