Moody's vs Snap Which Is More Favorable?

Moody's Corporation and Snap Inc. are two prominent companies in the financial and technology sectors, respectively. Moody's is well known for its credit ratings and financial research services, while Snap is famous for its social media platform, Snapchat. Both companies have experienced fluctuations in their stock prices due to various factors such as market trends, company performance, and investor sentiment. This comparison will delve deeper into the stock performance of Moody's and Snap and explore the reasons behind their movements in the market.

Moody's or Snap?

When comparing Moody's and Snap, 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 Moody's and Snap.

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. Moody's has a dividend yield of 0.7%, while Snap has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Moody's reports a 5-year dividend growth of 11.84% year and a payout ratio of 30.20%. On the other hand, Snap reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 Moody's P/E ratio at 44.36 and Snap's P/E ratio at -19.69. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Moody's P/B ratio is 22.75 while Snap's P/B ratio is 8.51.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Moody's has seen a 5-year revenue growth of 0.39%, while Snap's is 2.15%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Moody's's ROE at 54.97% and Snap's ROE at -43.31%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $486.82 for Moody's and $11.08 for Snap. Over the past year, Moody's's prices ranged from $360.05 to $503.95, with a yearly change of 39.97%. Snap's prices fluctuated between $8.29 and $17.90, with a yearly change of 115.92%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.