Sony Vs. Canon: Which Consumer Electronics Stock Is A Better Buy?

Even though SNE looks much more than  CAJ, it’s worth paying this premium considering SNE’s significantly higher earnings growth potential.

POWR Ratings

SNE has an overall A rating, which equates to a Strong Buy in our proprietary POWR Ratings system. However, CAJ has an overall B rating, which translates to Buy. The POWR Ratings are calculated by considering 118 different factors with each factor weighted to an optimal degree.

Both SNE and CAJ have a Momentum Grade of B. This is in sync with their price returns over the past year.

In terms of Growth Grade, SNE has a B, which is consistent with its expected growth in earnings and revenue. In comparison, CAJ has a Growth Grade of C.

SNE has an A Sentiment Grade, which is in sync with the analysts’ expectations regarding  its earnings and revenue growth. In comparison, CAJ has a B Sentiment Grade.

Of the 18 stocks in the D-rated Entertainment – Media Producers industry, SNE is ranked #2. In comparison, CAJ is ranked #7 of the 48 stocks in the B-rated Technology – Hardware industry.

Beyond what we’ve stated above, our POWR Ratings system also rates  SNE and CAJ for Quality, Stability, and Value. Get the ratings for SNE here. Also, click here to see the additional POWR Ratings for CAJ.

The Winner

While SNE and CAJ are good long-term investments considering their market dominance and brand recognition, SNE appears to be a better buy based on the factors discussed here. Even though CAJ is the relatively cheaper option by which to bet on the immense growth potential of the consumer electronics market, SNE is a proven winner, and we think its premium valuation is justified given its earnings and revenue growth potential.

Our research shows that the odds of success increase if one bets on stocks with an Overall POWR Rating of Buy or Strong Buy. If you’re looking for other top-rated stocks in the Entertainment – Media Producers industry, click here. Also, you can access the other top-rated stocks in the Technology – Hardware here.

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