Apple vs Walt Disney Which Is a Better Investment?

Both Apple and Walt Disney are iconic companies known for their innovative products and timeless entertainment offerings. Apple, a global leader in technology, has seen steady growth and success with its popular iPhone, iPad, and Mac products. On the other hand, Walt Disney, a renowned entertainment conglomerate, has captured the hearts of audiences worldwide with its beloved characters, theme parks, and blockbuster films. Both companies have loyal fan bases and strong financial performance, making them attractive investment options in the stock market.

Apple or Walt Disney?

When comparing Apple and Walt Disney, 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 Walt Disney.

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 Walt Disney has a dividend yield of 0.4%. 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, Walt Disney reports a 5-year dividend growth of 0.00% year and a payout ratio of 27.47%.

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 Walt Disney's P/E ratio at 41.35. 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 Walt Disney's P/B ratio is 2.04.

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 Walt Disney's is 0.23%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Apple's ROE at 137.87% and Walt Disney's ROE at 4.96%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $246.24 for Apple and $113.30 for Walt Disney. Over the past year, Apple's prices ranged from $164.08 to $250.80, with a yearly change of 52.85%. Walt Disney's prices fluctuated between $83.91 and $123.74, with a yearly change of 47.47%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.