Alphabet vs Intuit

Alphabet Inc. and Intuit Inc. are two prominent companies in the technology sector with strong track records of success. Alphabet, known for its search engine Google, is a global leader in online advertising and technology innovation. Intuit, on the other hand, is a leading provider of financial management software, including the popular product QuickBooks. Investors often compare the stocks of these two companies to determine which offers better growth potential and stability in the market.

Alphabet or Intuit?

When comparing Alphabet and Intuit, 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 Intuit.

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 Intuit has a dividend yield of 0.77%. 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, Intuit reports a 5-year dividend growth of 14.59% year and a payout ratio of 34.90%.

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 23.30 and Intuit's P/E ratio at 58.39. 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 6.79 while Intuit's P/B ratio is 9.38.

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 Intuit's is 1.19%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Alphabet's ROE at 30.48% and Intuit's ROE at 16.67%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $166.05 for Alphabet and $615.76 for Intuit. Over the past year, Alphabet's prices ranged from $121.46 to $193.31, with a yearly change of 59.16%. Intuit's prices fluctuated between $473.56 and $676.62, with a yearly change of 42.88%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.