Apple vs NIKE Which Outperforms?

Apple and Nike are two iconic companies that have become household names around the world. Both multinational corporations are leaders in their respective industries, with Apple dominating the technology sector and Nike reigning supreme in the athletic footwear and apparel market. Investors often compare the performance of these two stocks, analyzing factors such as revenue growth, market share, and brand loyalty. This comparison provides valuable insights into the financial health and future prospects of each company.

Apple or NIKE?

When comparing Apple and NIKE, 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 NIKE.

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 NIKE has a dividend yield of 1.95%. 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, NIKE reports a 5-year dividend growth of 11.13% year and a payout ratio of 41.56%.

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 40.16 and NIKE's P/E ratio at 21.83. 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 66.10 while NIKE's P/B ratio is 8.30.

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 NIKE's is 0.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Apple's ROE at 137.87% and NIKE's ROE at 37.37%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $246.24 for Apple and $76.77 for NIKE. Over the past year, Apple's prices ranged from $164.08 to $250.80, with a yearly change of 52.85%. NIKE's prices fluctuated between $70.75 and $123.39, with a yearly change of 74.40%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.