Fastly vs Microsoft Which Offers More Value?

Fastly and Microsoft are two tech giants in the stock market, both offering unique opportunities for investors. Fastly, a content delivery network company, has shown impressive growth in recent years as more businesses rely on digital infrastructure. On the other hand, Microsoft, a global leader in software and cloud services, continues to dominate the tech industry with consistent revenue and market stability. Understanding the differences and similarities between these two stocks can help investors make informed decisions for their portfolios.

Fastly or Microsoft?

When comparing Fastly 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 Fastly 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. Fastly 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. Fastly 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 Fastly P/E ratio at -9.82 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. Fastly P/B ratio is 1.51 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, Fastly has seen a 5-year revenue growth of 1.15%, while Microsoft's is 0.99%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Fastly's ROE at -15.15% and Microsoft's ROE at 34.56%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $10.38 for Fastly and $445.58 for Microsoft. Over the past year, Fastly's prices ranged from $5.52 to $25.87, with a yearly change of 368.66%. 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.