Hewlett Packard, Sanyo and Sony: Which is the Best Investment
Hewlett Packard has become one of the largest Electronics Companies in the World. The Company was established in 1939 by Bill Hewlett and David Packard in Paolo Alto, California. The companies specialize in the production of personal computers, servers, storage devices, printers, networking equipment, Computer monitors, digital cameras, digital imaging equipment, digital media equipment, printers and more. The future of Hewlett Packard seem bright with is annual revenue increasing by more than 6 million dollars in 2004. Hewlett Packard’s assets outweigh it’s liabilities with a current ratio of 1.8 which means greats things for there share holders. There dividend payout it that of $.32 per share and that is projected to raise by $.3 by the end of the 2006 fiscal year. Hewlett Packard recently acquired Compaq computers which should aid in strengthening there financial outlook by the end of 2006 and even though there merger met with some opposition it was proven to be very profitable for the company and its shareholders. All in all Hewlett Packard is posting great numbers and is positioning itself to be a very promising investment.
NYSE Symbol: HPQ
Fiscal Year End: October
2004 Sales (mil): $79,905.00
2004 Employees: 151,000
Current Ratio: 1.43
Asset Turnover Ratio: 1.1
Total Debt to Total assets Ratio: 0.50
Price/Earning Ratio: 28.53
Dividend Payout: 27.8%
Sanyo
Sanyo produces consumer and commercial electronics. Sanyo has more than 170 subsidiaries throughout the world. They create things ranging from electric bicycles to semi conductors. They also produce items such as CD players, Televisions, Appliances, Cell phones, Batteries and more. Sanyo has been struggling a bit financially within the past year its total revenue increased by a mere $350,000 in the year 2004. However its assets outweigh it’s liabilities with a current ratio of 1.78. There debt to assets ratio is average which helps to keep Sanyo in the running. Sanyo can be a great investment with shares costing about $11.36 per share and dividend payout of about $.12 per share. This is set to decrease slightly by the end of the fiscal year. Sanyo’s future is still however very promising with recent alliances with Companies such as Samsung, Sharp, Seiko Epson and others. I would say definitely keep Sanyo on your watch list.
NASDAQ Symbol: SANYY
Fiscal Year End: March
2005 Sales (mil): $25,173.7
2004 Employees: 82,337
Current Ratio: 1.09
Asset Turnover Ratio: 1.0
Total Debt to Total Assets Ratio: 0.89
Price/Earning Ratio: – –
Dividend Payout: –
Sony
Sony is one of leading electronics companies in the world. However electronics is just the tip of the iceberg for this multifaceted company. With ties, to music, movies, and home of one the most popular gaming consoles (PlayStation 2) ever Sony is a force to be reckoned with Sony appears to be one of the main front runners of the game console division, however sales of other products like there DVD recorders, digital cameras, music and others have dropped. Thanks to competitors like Apple and its Ipod as well as Samsung and its entire consumer electronics line. Sony is seemingly being left in the dust. Sony’s revenue dropped by more than 6 million dollars in the year 2004 and projections are not looking good for the end of the 2005 fiscal year. Assets however outweigh liabilities with a current ratio of 1.19 however that number is expected to decrease by the end of the 2006 fiscal year which could mean serious financial trouble for the Sony corporation. Hopefully the launch of the new Play Station will breathe some life into this company but until then I suggest you steer clear of Sony.
NYSE Symbol: SNE
Fiscal Year End: March
2004 Sales (mil): $66,912
2004 Employees: 162,000
Current Ratio: 1.19
Asset Turnover Ratio: 0.8
Total Debt to Total Assets Ratio: 0.70
Price/Earning Ratio: 31.90
Dividend Payout: 15.1%
The most promising company out of these three electronics giants appears to be Hewlett Packard. With it’s promising numbers, successful mergers, and increasing revenue. HP shares go for about $29 a pop and they are expected to rise over the holiday season. HP also has few more tricks up its sleeves to help increase sales and beef up profit. I tried to find out just what they were but everything appears to be on the extreme hush, hush. Basically HP appears to be the more solid and promising choice, I would personally invest in this company. My verdict Hp all the way!
