AL vs Microsoft Which Is Stronger?

AL, or Alphabet Inc., and Microsoft Corporation are two tech giants in the stock market that have long been considered some of the top choices for investors. Both companies have seen significant growth in recent years due to their innovative products and services. However, their stocks have performed differently in the market, with Alphabet's stock often being seen as more volatile compared to Microsoft's more stable price movements. This comparison between AL and Microsoft's stocks will delve into the reasons behind their performance and help investors make informed decisions on where to invest their money.

AL or Microsoft?

When comparing AL and Microsoft, 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 AL and Microsoft.

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. AL has a dividend yield of -%, while Microsoft has a dividend yield of 0.69%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. AL reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Microsoft reports a 5-year dividend growth of 10.16% year and a payout ratio of 24.63%.

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 AL P/E ratio at -15.83 and Microsoft's P/E ratio at 36.87. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. AL P/B ratio is -35.91 while Microsoft's P/B ratio is 11.60.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, AL has seen a 5-year revenue growth of -0.93%, while Microsoft's is 0.99%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AL's ROE at 166.45% and Microsoft's ROE at 34.56%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are HK$0.57 for AL and $444.05 for Microsoft. Over the past year, AL's prices ranged from HK$0.48 to HK$0.98, with a yearly change of 104.17%. Microsoft's prices fluctuated between $364.13 and $468.35, with a yearly change of 28.62%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.