HP vs Apple

HP vs Apple stocks have been a hotly debated topic among investors for years. Both companies are giants in the technology industry, but with very different approaches to business. HP, a stalwart in the computing world, is known for its focus on hardware and printing solutions. On the other hand, Apple, with its innovative products like the iPhone and MacBook, has captured the hearts of consumers worldwide. Understanding the financial performance and market trends of both companies is crucial for investors looking to make informed decisions.

HP or Apple?

When comparing HP and Apple, 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 HP and Apple.

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. HP has a dividend yield of 3.73%, while Apple has a dividend yield of 0.42%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. HP reports a 5-year dividend growth of 12.96% year and a payout ratio of 37.71%. On the other hand, Apple reports a 5-year dividend growth of -19.56% year and a payout ratio of 14.90%.

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 HP P/E ratio at 12.73 and Apple's P/E ratio at 35.06. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. HP P/B ratio is -26.00 while Apple's P/B ratio is 53.59.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, HP has seen a 5-year revenue growth of 0.50%, while Apple's is 0.82%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with HP's ROE at -226.67% and Apple's ROE at 147.15%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $36.84 for HP and $232.37 for Apple. Over the past year, HP's prices ranged from $25.67 to $39.52, with a yearly change of 53.95%. Apple's prices fluctuated between $164.08 and $237.49, with a yearly change of 44.74%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.