Apple vs Coupang Which Is a Smarter Choice?

Apple and Coupang are two major players in the technology and e-commerce industries, with stocks that have attracted the attention of investors around the world. Apple, known for its iconic products like the iPhone and Mac, has a long-standing history of success and a loyal customer base. On the other hand, Coupang, a South Korean e-commerce giant, has rapidly risen to prominence with its innovative delivery services and strong growth potential. Both companies offer unique investment opportunities, but their stocks come with different risk profiles and growth prospects. In this comparison, we will delve into the key differences between Apple and Coupang stocks, analyzing their financial performance, market trends, and potential for future growth.

Apple or Coupang?

When comparing Apple and Coupang, 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 Coupang.

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 0.55%, while Coupang 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, Coupang 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 36.29 and Coupang's P/E ratio at 42.15. 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 59.74 while Coupang's P/B ratio is 10.30.

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 Coupang's is 4.40%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Apple's ROE at 137.87% and Coupang's ROE at 25.27%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $221.50 for Apple and $23.61 for Coupang. Over the past year, Apple's prices ranged from $164.08 to $237.49, with a yearly change of 44.74%. Coupang's prices fluctuated between $13.51 and $26.91, with a yearly change of 99.19%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.