Meta vs Alphabet Which Is More Reliable?

Meta Platforms Inc. (formerly known as Facebook) and Alphabet Inc. (the parent company of Google) are two tech giants that dominate the digital landscape. Both companies have a significant impact on our daily lives, but their approaches and strategies differ. Meta focuses on social media platforms while Alphabet's strengths lie in search, advertising, and technology innovation. Investors often debate which stock is the better long-term investment, as each has its own risks and opportunities in the ever-evolving tech industry.

Meta or Alphabet?

When comparing Meta 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 Meta 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. Meta has a dividend yield of -%, while Alphabet has a dividend yield of 0.34%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Meta reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Alphabet reports a 5-year dividend growth of 0.00% year and a payout ratio of 5.22%.

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 Meta P/E ratio at -2.97 and Alphabet's P/E ratio at 22.86. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Meta P/B ratio is 0.20 while Alphabet's P/B ratio is 6.86.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Meta has seen a 5-year revenue growth of -1.00%, while Alphabet's is 1.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Meta's ROE at -6.21% and Alphabet's ROE at 31.66%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ฿0.12 for Meta and $175.40 for Alphabet. Over the past year, Meta's prices ranged from ฿0.11 to ฿0.21, with a yearly change of 90.91%. Alphabet's prices fluctuated between $131.06 and $193.31, with a yearly change of 47.50%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.