Alphabet vs Apple

Both Alphabet (GOOGL) and Apple (AAPL) are tech giants that have been dominant players in the stock market for years. Alphabet is known for its search engine Google, while Apple is renowned for its iconic iPhones and other innovative products. Both companies have experienced strong growth and have loyal customer bases. Investors may consider various factors such as revenue growth, profitability, and product innovation when deciding between investing in Alphabet or Apple stocks.

Alphabet or Apple?

When comparing Alphabet and Apple, 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 Alphabet and Apple.

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. Alphabet has a dividend yield of 0.36%, while Apple has a dividend yield of 0.42%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Alphabet reports a 5-year dividend growth of 0.00% year and a payout ratio of 2.81%. On the other hand, Apple reports a 5-year dividend growth of -19.56% year and a payout ratio of 14.90%.

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 Alphabet P/E ratio at 23.23 and Apple's P/E ratio at 34.68. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Alphabet P/B ratio is 6.77 while Apple's P/B ratio is 53.01.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Alphabet has seen a 5-year revenue growth of 1.47%, while Apple's is 0.82%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Alphabet's ROE at 30.48% and Apple's ROE at 147.15%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $164.79 for Alphabet and $228.60 for Apple. Over the past year, Alphabet's prices ranged from $121.46 to $193.31, with a yearly change of 59.16%. Apple's prices fluctuated between $164.08 and $237.23, with a yearly change of 44.58%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.