Alphabet vs Comcast Which Is a Smarter Choice?

Alphabet Inc. and Comcast Corporation are two major players in the technology and media industries, each with its own strengths and challenges. Alphabet, the parent company of Google, is known for its dominance in the search engine market and innovative products like Android and YouTube. Comcast, on the other hand, is a leading provider of cable television and broadband services. Both stocks have seen fluctuations in recent years, making them viable options for investors looking to diversify their portfolios. In this comparison, we will analyze the performance and potential of Alphabet and Comcast stocks to help investors make informed decisions.

Alphabet or Comcast?

When comparing Alphabet and Comcast, 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 Comcast.

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 0.31%, while Comcast has a dividend yield of 3.03%. 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 5.22%. On the other hand, Comcast reports a 5-year dividend growth of 0.00% year and a payout ratio of 32.74%.

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 25.03 and Comcast's P/E ratio at 10.59. 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 7.51 while Comcast's P/B ratio is 1.81.

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 Comcast's is 0.41%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Alphabet's ROE at 31.66% and Comcast's ROE at 17.56%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $193.29 for Alphabet and $60.75 for Comcast. Over the past year, Alphabet's prices ranged from $131.06 to $196.89, with a yearly change of 50.23%. Comcast's prices fluctuated between $53.54 and $66.80, with a yearly change of 24.77%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.