General Motors vs Microsoft Which Is Stronger?

General Motors (GM) and Microsoft are two prominent companies in the automotive and technology sectors, respectively. Both companies have shown strong performance in the stock market, with GM being one of the largest automakers and Microsoft being a leading software and technology company. Investors often compare the two stocks due to their presence in different industries, but both are attractive options for long-term investments. Understanding the performance and trends of GM and Microsoft stocks can help investors make informed decisions in their portfolios.

General Motors or Microsoft?

When comparing General Motors 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 General Motors 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. General Motors has a dividend yield of 0.91%, while Microsoft has a dividend yield of 0.69%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. General Motors reports a 5-year dividend growth of -25.03% year and a payout ratio of 5.69%. 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 General Motors P/E ratio at 5.30 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. General Motors P/B ratio is 0.83 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, General Motors has seen a 5-year revenue growth of 0.21%, while Microsoft's is 0.99%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with General Motors's ROE at 16.37% and Microsoft's ROE at 34.56%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $51.91 for General Motors and $445.58 for Microsoft. Over the past year, General Motors's prices ranged from $34.32 to $61.24, with a yearly change of 78.44%. 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.