LVMH vs Apple Which Is a Better Investment?

LVMH and Apple are two widely recognized companies in the global market, each known for their innovation, brand prominence, and strong financial performance. LVMH, a luxury goods conglomerate, boasts an impressive portfolio of high-end brands in sectors including fashion, cosmetics, and spirits. On the other hand, Apple is a technology giant renowned for its groundbreaking products, including the iPhone and Mac. Both companies have seen fluctuations in their stock prices due to market conditions and product launches, making them intriguing options for investors seeking high potential returns.

LVMH or Apple?

When comparing LVMH 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 LVMH 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. LVMH has a dividend yield of 2.34%, while Apple has a dividend yield of 0.55%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. LVMH reports a 5-year dividend growth of 16.19% year and a payout ratio of 48.75%. On the other hand, Apple reports a 5-year dividend growth of -19.56% year and a payout ratio of 16.25%.

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 LVMH P/E ratio at 21.39 and Apple's P/E ratio at 36.29. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. LVMH P/B ratio is 4.61 while Apple's P/B ratio is 59.74.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, LVMH has seen a 5-year revenue growth of 0.85%, while Apple's is 0.82%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with LVMH's ROE at 22.19% and Apple's ROE at 137.87%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $636.49 for LVMH and $221.50 for Apple. Over the past year, LVMH's prices ranged from $600.83 to $958.69, with a yearly change of 59.56%. 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.