Coca-Cola vs Apple Which Is Superior?

Investors looking to diversify their portfolio often consider investing in well-known companies like Coca-Cola and Apple. Both are major players in their respective industries – Coca-Cola in the beverage sector and Apple in the technology sector. While Coca-Cola has a long history of consistent performance and dividend payments, Apple is known for its innovative products and strong brand loyalty. Understanding the differences and similarities between these two stocks can help investors make informed decisions about their investment strategies.

Coca-Cola or Apple?

When comparing Coca-Cola and Apple, 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 Coca-Cola and Apple.

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. Coca-Cola has a dividend yield of 3.79%, while Apple has a dividend yield of 0.55%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Coca-Cola reports a 5-year dividend growth of 3.36% year and a payout ratio of 78.28%. On the other hand, Apple reports a 5-year dividend growth of -19.56% year and a payout ratio of 16.25%.

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 Coca-Cola P/E ratio at 26.24 and Apple's P/E ratio at 36.29. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Coca-Cola P/B ratio is 10.30 while Apple's P/B ratio is 59.74.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Coca-Cola has seen a 5-year revenue growth of 0.31%, while Apple's is 0.82%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Coca-Cola's ROE at 39.75% and Apple's ROE at 137.87%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $63.25 for Coca-Cola and $221.50 for Apple. Over the past year, Coca-Cola's prices ranged from $56.60 to $73.53, with a yearly change of 29.91%. Apple's prices fluctuated between $164.08 and $237.49, with a yearly change of 44.74%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.