Baidu vs Microsoft Which Is More Lucrative?

Baidu and Microsoft are two giants in the technology industry, each offering unique strengths and opportunities for investors. Baidu, the leading Chinese search engine, has seen significant growth in recent years with a focus on artificial intelligence and cloud computing. Meanwhile, Microsoft, a global powerhouse in software and technology services, continues to deliver strong financial performance and growth in its cloud services and productivity software. Both companies offer potential for investors looking to capitalize on the tech sector's growth.

Baidu or Microsoft?

When comparing Baidu and Microsoft, 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 Baidu and Microsoft.

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. Baidu has a dividend yield of -%, while Microsoft has a dividend yield of 0.69%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Baidu reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Microsoft reports a 5-year dividend growth of 10.16% year and a payout ratio of 24.63%.

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 Baidu P/E ratio at 8.99 and Microsoft's P/E ratio at 36.73. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Baidu P/B ratio is 0.63 while Microsoft's P/B ratio is 11.55.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Baidu has seen a 5-year revenue growth of 8.97%, while Microsoft's is 0.99%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Baidu's ROE at 7.30% and Microsoft's ROE at 34.56%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $89.26 for Baidu and $445.58 for Microsoft. Over the past year, Baidu's prices ranged from $78.95 to $120.25, with a yearly change of 52.31%. Microsoft's prices fluctuated between $366.28 and $468.35, with a yearly change of 27.87%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.