Meta vs Microsoft

Meta and Microsoft are two tech giants in the stock market that have been competing for years. Meta, previously known as Facebook, is a social media company that has seen its stock fluctuate due to various controversies and regulatory concerns. On the other hand, Microsoft is a software and technology company that has been seeing steady growth in its stock price. Investors are often torn between these two stocks, with each offering unique opportunities and risks in the highly competitive tech sector.

Meta or Microsoft?

When comparing Meta and Microsoft, 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 Microsoft.

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 Microsoft has a dividend yield of 0.72%. 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, Microsoft reports a 5-year dividend growth of 10.16% year and a payout ratio of 24.70%.

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 -3.83 and Microsoft's P/E ratio at 35.31. 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 0.22 while Microsoft's P/B ratio is 11.59.

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 Microsoft's is 0.99%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Meta's ROE at -5.84% and Microsoft's ROE at 35.95%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ฿0.14 for Meta and $415.26 for Microsoft. Over the past year, Meta's prices ranged from ฿0.11 to ฿0.25, with a yearly change of 127.27%. Microsoft's prices fluctuated between $324.39 and $468.35, with a yearly change of 44.38%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.