Apple vs LVMH

Apple and LVMH are two diverse companies operating in different industries, technology and luxury goods respectively, but both are considered market leaders in their respective fields. Apple, known for its innovative and high-quality products, has a loyal customer base and a strong financial standing. On the other hand, LVMH, a conglomerate of luxury brands, holds a prominent position in the luxury goods market. Investors often compare the performance of these two stocks to make informed investment decisions.

Apple or LVMH?

When comparing Apple and LVMH, 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 LVMH.

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 LVMH has a dividend yield of 2.36%. 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, LVMH reports a 5-year dividend growth of 16.19% year and a payout ratio of 47.27%.

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 LVMH's P/E ratio at 17.09. 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 LVMH's P/B ratio is 4.56.

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 LVMH's is 0.85%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Apple's ROE at 147.15% and LVMH's ROE at 27.51%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $232.37 for Apple and $635.00 for LVMH. Over the past year, Apple's prices ranged from $164.08 to $237.49, with a yearly change of 44.74%. LVMH's prices fluctuated between $635.00 and $958.69, with a yearly change of 50.97%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.