Intuit vs Alphabet

Intuit and Alphabet are two major players in the tech industry, with both companies known for their innovative products and services. Intuit is a financial software company that provides solutions for small business owners, while Alphabet is the parent company of Google, the world's largest search engine. Investors considering these stocks may be drawn to Intuit's stability and consistent growth, or Alphabet's potential for high returns and dominance in the online advertising market. It's important to carefully weigh the risks and benefits of investing in either company.

Intuit or Alphabet?

When comparing Intuit and Alphabet, 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 Intuit and Alphabet.

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. Intuit has a dividend yield of 0.77%, while Alphabet has a dividend yield of 0.36%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Intuit reports a 5-year dividend growth of 14.59% year and a payout ratio of 34.90%. On the other hand, Alphabet reports a 5-year dividend growth of 0.00% year and a payout ratio of 2.81%.

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 Intuit P/E ratio at 58.39 and Alphabet's P/E ratio at 23.30. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Intuit P/B ratio is 9.38 while Alphabet's P/B ratio is 6.79.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Intuit has seen a 5-year revenue growth of 1.19%, while Alphabet's is 1.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Intuit's ROE at 16.67% and Alphabet's ROE at 30.48%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $615.76 for Intuit and $166.05 for Alphabet. Over the past year, Intuit's prices ranged from $473.56 to $676.62, with a yearly change of 42.88%. Alphabet's prices fluctuated between $121.46 and $193.31, with a yearly change of 59.16%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.