HP vs Coca-Cola Which Is a Better Investment?

Both HP (Hewlett-Packard) and Coca-Cola are iconic companies with a long history of strong performance in the stock market. HP, a leader in the technology industry, has shown consistent growth in revenue and profit in recent years. On the other hand, Coca-Cola, a mainstay in the beverage industry, has faced challenges with changing consumer preferences and health concerns. Investors must carefully evaluate the financial health and potential for growth of each company before making investment decisions in HP vs Coca-Cola stocks.

HP or Coca-Cola?

When comparing HP and Coca-Cola, 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 Coca-Cola.

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 3.23%, while Coca-Cola has a dividend yield of 3.07%. 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 38.74%. On the other hand, Coca-Cola reports a 5-year dividend growth of 3.36% year and a payout ratio of 78.28%.

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 11.94 and Coca-Cola's P/E ratio at 26.14. 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 11.20 while Coca-Cola's P/B ratio is 10.26.

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 Coca-Cola's is 0.31%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with HP's ROE at -1122.35% and Coca-Cola's ROE at 39.75%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $34.34 for HP and $63.11 for Coca-Cola. Over the past year, HP's prices ranged from $27.43 to $39.80, with a yearly change of 45.10%. Coca-Cola's prices fluctuated between $57.47 and $73.53, with a yearly change of 27.95%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.