General Electric vs Whirlpool Which Should You Buy?

General Electric and Whirlpool are two major players in the global appliance industry with long-standing histories and diverse product offerings. Both companies have seen fluctuations in their stock prices in recent years, influenced by factors such as market trends, financial performance, and industry competition. While General Electric has faced challenges in restructuring and debt reduction, Whirlpool has been focused on innovation and market expansion. Investors may find opportunities for growth and stability in both companies, but careful analysis and monitoring of market conditions are essential to make informed investment decisions.

General Electric or Whirlpool?

When comparing General Electric and Whirlpool, 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 General Electric and Whirlpool.

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. General Electric has a dividend yield of 0.5%, while Whirlpool has a dividend yield of 6.2%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. General Electric reports a 5-year dividend growth of -2.87% year and a payout ratio of 12.65%. On the other hand, Whirlpool reports a 5-year dividend growth of 9.00% year and a payout ratio of 68.04%.

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 General Electric P/E ratio at 32.29 and Whirlpool's P/E ratio at 11.13. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. General Electric P/B ratio is 10.69 while Whirlpool's P/B ratio is 2.05.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, General Electric has seen a 5-year revenue growth of -0.44%, while Whirlpool's is 0.13%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with General Electric's ROE at 26.39% and Whirlpool's ROE at 20.64%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $183.71 for General Electric and $110.50 for Whirlpool. Over the past year, General Electric's prices ranged from $91.55 to $194.80, with a yearly change of 112.78%. Whirlpool's prices fluctuated between $84.18 and $125.68, with a yearly change of 49.30%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.