Alphabet vs Meta

Alphabet Inc. and Meta Platforms Inc. are two tech giants that have dominated the stock market in recent years. Alphabet, the parent company of Google, is known for its strong presence in the online advertising space and diverse portfolio of innovative products and services. Meta, formerly known as Facebook, is a social media powerhouse with a massive user base and a growing focus on virtual reality and augmented reality technologies. Both companies have seen significant growth in their stock prices, but face unique challenges and opportunities in the ever-evolving tech industry.

Alphabet or Meta?

When comparing Alphabet and Meta, 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 Meta.

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 Meta has a dividend yield of -%. 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, Meta reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 Meta's P/E ratio at -3.83. 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 Meta's P/B ratio is 0.22.

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 Meta's is -1.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Alphabet's ROE at 30.48% and Meta's ROE at -5.84%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $166.05 for Alphabet and ฿0.14 for Meta. Over the past year, Alphabet's prices ranged from $121.46 to $193.31, with a yearly change of 59.16%. Meta's prices fluctuated between ฿0.11 and ฿0.25, with a yearly change of 127.27%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.