Coca-Cola vs Xerox Which Should You Buy?

Coca-Cola and Xerox are two well-known companies with long histories in the business world. Coca-Cola, a global beverage giant, is known for its iconic soda products, while Xerox, a technology and services company, has made its mark in the printing and document management industry. Both companies have faced their fair share of challenges and changes in the market, leading to fluctuations in their stock prices. In this comparison, we will analyze the performance of Coca-Cola and Xerox stocks, looking at factors such as revenue, growth potential, and market trends.

Coca-Cola or Xerox?

When comparing Coca-Cola and Xerox, 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 Xerox.

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 3.07%, while Xerox has a dividend yield of 11.39%. 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, Xerox reports a 5-year dividend growth of 0.00% year and a payout ratio of -10.38%.

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 26.14 and Xerox's P/E ratio at -0.80. 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 10.26 while Xerox's P/B ratio is 0.72.

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 Xerox's is 0.17%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Coca-Cola's ROE at 39.75% and Xerox's ROE at -57.57%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $63.11 for Coca-Cola and $8.54 for Xerox. Over the past year, Coca-Cola's prices ranged from $57.47 to $73.53, with a yearly change of 27.95%. Xerox's prices fluctuated between $8.02 and $19.78, with a yearly change of 146.63%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.