Apple vs ASML Which Outperforms?

Apple and ASML are two prominent companies in the tech sector, with both firms playing crucial roles in shaping the future of technology. Apple, a global leader in consumer electronics, has a loyal customer base and a strong track record of innovation. On the other hand, ASML, a Dutch semiconductor company, provides critical tools and technology for the production of semiconductors. Both stocks have performed well in recent years, but their different business models and markets make for an interesting comparison in terms of investment potential.

Apple or ASML?

When comparing Apple and ASML, 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 ASML.

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 ASML has a dividend yield of 0.89%. 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, ASML reports a 5-year dividend growth of 29.40% year and a payout ratio of 35.02%.

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 ASML's P/E ratio at 38.78. 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 ASML's P/B ratio is 16.63.

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 ASML's is 1.71%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Apple's ROE at 137.87% and ASML's ROE at 47.68%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $246.24 for Apple and $716.22 for ASML. Over the past year, Apple's prices ranged from $164.08 to $250.80, with a yearly change of 52.85%. ASML's prices fluctuated between $645.45 and $1110.09, with a yearly change of 71.99%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.