Apple vs HP Which Is More Favorable?

Apple and HP are two of the leading technology companies in the world, each competing in various sectors of the market. Both companies have a long history of innovation and customer loyalty, but their stock performances have seen ups and downs over the years. Apple's stock has been on a steady rise in recent years, driven by the success of their popular products like the iPhone and MacBooks. On the other hand, HP's stock has fluctuated due to changes in leadership and shifts in their focus from consumer products to enterprise services. Investors closely monitor the performance of both stocks to gauge the health of the technology industry as a whole.

Apple or HP?

When comparing Apple and HP, 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 HP.

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 HP has a dividend yield of 3.02%. 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, HP reports a 5-year dividend growth of 12.96% year and a payout ratio of 38.74%.

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 39.94 and HP's P/E ratio at 12.60. 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 65.74 while HP's P/B ratio is 11.81.

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 HP's is 0.50%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Apple's ROE at 137.87% and HP's ROE at -1122.35%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $241.76 for Apple and $36.12 for HP. Over the past year, Apple's prices ranged from $164.08 to $247.24, with a yearly change of 50.68%. HP's prices fluctuated between $27.43 and $39.80, with a yearly change of 45.10%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.