Apple vs Garmin

Apple and Garmin are two prominent companies in the tech industry that have garnered significant attention from investors. While Apple is known for its innovative products such as the iPhone and iPad, Garmin specializes in GPS technology and wearable devices. Both companies have seen their stocks perform well in recent years, but they have taken different paths to success. With their loyal customer bases and strong financial performance, Apple and Garmin are frequently compared by investors seeking to capitalize on their potential growth.

Apple or Garmin?

When comparing Apple and Garmin, 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 Garmin.

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 0.42%, while Garmin has a dividend yield of 1.77%. 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 14.90%. On the other hand, Garmin reports a 5-year dividend growth of 6.82% year and a payout ratio of 40.96%.

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 35.06 and Garmin's P/E ratio at 23.29. 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 53.59 while Garmin's P/B ratio is 4.57.

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 Garmin's is 0.54%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Apple's ROE at 147.15% and Garmin's ROE at 19.93%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $232.37 for Apple and $166.36 for Garmin. Over the past year, Apple's prices ranged from $164.08 to $237.49, with a yearly change of 44.74%. Garmin's prices fluctuated between $99.61 and $184.42, with a yearly change of 85.14%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.