Apple vs PayPal Which Is More Attractive?

Apple Inc. and PayPal Holdings are two giants in the tech industry, each offering unique opportunities for investors. Apple, known for its innovative products and loyal customer base, has a strong track record of growth and profitability. On the other hand, PayPal, a leading digital payments platform, has seen rapid expansion in recent years as more consumers embrace online transactions. Both companies face unique challenges and opportunities in the constantly evolving tech landscape, making them appealing options for investors seeking growth potential and stability.

Apple or PayPal?

When comparing Apple and PayPal, 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 PayPal.

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 PayPal 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, PayPal 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 39.90 and PayPal's P/E ratio at 20.80. 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 65.67 while PayPal'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 PayPal's is 1.07%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Apple's ROE at 137.87% and PayPal's ROE at 21.46%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $246.26 for Apple and $87.84 for PayPal. Over the past year, Apple's prices ranged from $164.08 to $250.80, with a yearly change of 52.85%. PayPal's prices fluctuated between $55.77 and $93.66, with a yearly change of 67.94%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.