Alphabet vs QUALCOMM

Alphabet Inc., the parent company of Google, and QUALCOMM Incorporated, a leading semiconductor and telecommunications company, are two major players in the technology sector. Both companies have seen steady growth in their stock prices over the years, fueled by their innovative products and services. However, there are key differences between the two companies in terms of their business models and market strategies. In this analysis, we will compare Alphabet and QUALCOMM stocks, evaluating their performance, financial health, and potential for future growth.

Alphabet or QUALCOMM ?

When comparing Alphabet and QUALCOMM , 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 QUALCOMM .

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 QUALCOMM has a dividend yield of 1.9%. 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, QUALCOMM reports a 5-year dividend growth of 5.33% year and a payout ratio of 41.69%.

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 QUALCOMM 's P/E ratio at 22.30. 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 QUALCOMM 's P/B ratio is 7.88.

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 QUALCOMM 's is 1.06%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Alphabet's ROE at 30.48% and QUALCOMM 's ROE at 37.16%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $166.05 for Alphabet and $172.75 for QUALCOMM . Over the past year, Alphabet's prices ranged from $121.46 to $193.31, with a yearly change of 59.16%. QUALCOMM 's prices fluctuated between $104.33 and $230.63, with a yearly change of 121.06%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.