Apple vs Coca-Cola Which Is More Profitable?

When it comes to investing in two of the most iconic and successful companies in the world, Apple and Coca-Cola often come to mind. Both companies have long-standing histories of growth and profitability, making them attractive options for investors looking to diversify their portfolios. However, each company operates in different industries and faces unique challenges and opportunities. Understanding the differences in their business models, financial performance, and market trends is crucial for making informed investment decisions in Apple vs Coca-Cola stocks.

Apple or Coca-Cola?

When comparing Apple and Coca-Cola, 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 Coca-Cola.

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 0.41%, while Coca-Cola has a dividend yield of 3.1%. 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, Coca-Cola reports a 5-year dividend growth of 3.36% year and a payout ratio of 78.28%.

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 39.31 and Coca-Cola's P/E ratio at 25.90. 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 64.69 while Coca-Cola's P/B ratio is 10.17.

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 Coca-Cola's is 0.31%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Apple's ROE at 137.87% and Coca-Cola's ROE at 39.75%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $242.08 for Apple and $62.51 for Coca-Cola. Over the past year, Apple's prices ranged from $164.08 to $244.63, with a yearly change of 49.09%. Coca-Cola's prices fluctuated between $57.47 and $73.53, with a yearly change of 27.95%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.