Apple vs Advanced Micro Devices Which Should You Buy?

Apple and Advanced Micro Devices (AMD) are two prominent players in the technology industry, each with a significant presence in the stock market. Both companies are known for their innovative products and services, driving their stock prices to new heights over the years. Apple, a market leader in consumer electronics, is constantly delivering new products that captivate consumers globally. On the other hand, AMD specializes in providing high-performance computing solutions, particularly in the gaming and professional markets. Investors are closely watching both stocks, as they navigate through market fluctuations and changing consumer trends.

Apple or Advanced Micro Devices?

When comparing Apple and Advanced Micro Devices, 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 Apple and Advanced Micro Devices.

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. Apple has a dividend yield of 0.4%, while Advanced Micro Devices has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Apple reports a 5-year dividend growth of -19.56% year and a payout ratio of 16.25%. On the other hand, Advanced Micro Devices 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 Apple P/E ratio at 40.13 and Advanced Micro Devices's P/E ratio at 115.87. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Apple P/B ratio is 66.06 while Advanced Micro Devices's P/B ratio is 3.71.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Apple has seen a 5-year revenue growth of 0.82%, while Advanced Micro Devices's is 1.29%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Apple's ROE at 137.87% and Advanced Micro Devices's ROE at 3.24%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $245.68 for Apple and $129.07 for Advanced Micro Devices. Over the past year, Apple's prices ranged from $164.08 to $250.80, with a yearly change of 52.85%. Advanced Micro Devices's prices fluctuated between $121.83 and $227.30, with a yearly change of 86.57%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.