Meta vs Apple Which Is a Smarter Choice?
Meta (formerly Facebook) and Apple are two tech giants that have been dominating the stock market in recent years. Both companies have seen significant growth in their stock prices, but their approaches to business and the tech industry are quite different. Meta focuses on social media and virtual reality, while Apple is known for its hardware and software products. Investors often compare the two stocks, debating which company will continue to outperform in the long run.
Meta or Apple?
When comparing Meta 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 Meta 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.
Meta has a dividend yield of -%, while Apple has a dividend yield of 0.4%. 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, 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 Meta P/E ratio at -2.97 and Apple's P/E ratio at 40.16. 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 Apple's P/B ratio is 66.10.
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 Apple's is 0.82%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Meta's ROE at -6.21% and Apple's ROE at 137.87%.
Retail Investors:
Retail investors often consider stock affordability and company familiarity. For example, day low prices are ฿0.12 for Meta and $246.24 for Apple. Over the past year, Meta's prices ranged from ฿0.11 to ฿0.21, with a yearly change of 90.91%. Apple's prices fluctuated between $164.08 and $250.80, with a yearly change of 52.85%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.