Comcast vs Alphabet Which Offers More Value?

Comcast and Alphabet are two major players in the technology and media industries, each offering unique opportunities for investors. Comcast, a leading telecommunications company, has a diverse portfolio of businesses including cable, internet, and entertainment services. On the other hand, Alphabet, the parent company of Google, is heavily focused on technology innovation and internet services. Both companies have experienced growth and success in recent years, but each presents distinct advantages and risks for investors looking to capitalize on the rapidly evolving digital landscape.

Comcast or Alphabet?

When comparing Comcast and Alphabet, 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 Comcast and Alphabet.

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. Comcast has a dividend yield of 3.07%, while Alphabet has a dividend yield of 0.31%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Comcast reports a 5-year dividend growth of 0.00% year and a payout ratio of 32.74%. On the other hand, Alphabet reports a 5-year dividend growth of 0.00% year and a payout ratio of 5.22%.

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 Comcast P/E ratio at 10.45 and Alphabet's P/E ratio at 25.47. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Comcast P/B ratio is 1.79 while Alphabet's P/B ratio is 7.65.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Comcast has seen a 5-year revenue growth of 0.41%, while Alphabet's is 1.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Comcast's ROE at 17.56% and Alphabet's ROE at 31.66%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $60.75 for Comcast and $186.26 for Alphabet. Over the past year, Comcast's prices ranged from $53.54 to $66.80, with a yearly change of 24.77%. Alphabet's prices fluctuated between $131.06 and $196.89, with a yearly change of 50.23%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.