Apple vs Walmart

Apple and Walmart are two of the biggest players in the stock market, but they represent very different sectors of the economy. Apple is a technology giant known for its innovative products and strong brand loyalty, while Walmart is a retail powerhouse with a massive physical presence and a focus on everyday essentials. Both companies have enjoyed success in recent years, but their stock performance can vary greatly due to their differing business models and market conditions. Investors often compare the two stocks to determine which offers the best long-term growth potential.

Apple or Walmart?

When comparing Apple and Walmart, 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 Walmart.

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 Walmart has a dividend yield of 1.0%. 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, Walmart reports a 5-year dividend growth of 1.85% year and a payout ratio of 41.18%.

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 Walmart's P/E ratio at 42.23. 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 Walmart's P/B ratio is 7.78.

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 Walmart's is 0.34%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Apple's ROE at 147.15% and Walmart's ROE at 18.91%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $232.37 for Apple and $80.52 for Walmart. Over the past year, Apple's prices ranged from $164.08 to $237.49, with a yearly change of 44.74%. Walmart's prices fluctuated between $49.85 and $81.82, with a yearly change of 64.14%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.