Apple vs Alphabet Which Is More Reliable?

Apple and Alphabet, two tech giants that have dominated the market for years, are often compared by investors looking to capitalize on the growth of the tech sector. Apple, known for its innovative products such as the iPhone and MacBook, has a strong track record of generating revenue and maintaining a loyal customer base. On the other hand, Alphabet, the parent company of Google, is a leader in the digital advertising space and continues to innovate with new technologies. Both stocks have their own unique strengths and weaknesses, making them enticing options for investors seeking to diversify their portfolios.

Apple or Alphabet?

When comparing Apple and Alphabet, 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 Alphabet.

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 Alphabet has a dividend yield of 0.32%. 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, Alphabet reports a 5-year dividend growth of 0.00% year and a payout ratio of 5.22%.

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 40.16 and Alphabet's P/E ratio at 24.75. 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 66.10 while Alphabet's P/B ratio is 7.43.

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 Alphabet's is 1.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Apple's ROE at 137.87% and Alphabet's ROE at 31.66%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $246.24 for Apple and $191.26 for Alphabet. Over the past year, Apple's prices ranged from $164.08 to $250.80, with a yearly change of 52.85%. Alphabet's prices fluctuated between $131.55 and $196.89, with a yearly change of 49.67%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.