NVIDIA vs Alphabet Which Is More Profitable?

NVIDIA and Alphabet are two tech giants that have been dominating the stock market in recent years. NVIDIA, known for its cutting-edge graphics technology, has seen rapid growth in its stock price due to increased demand for its gaming and data center products. On the other hand, Alphabet, the parent company of Google, has also experienced significant growth thanks to its dominance in the online advertising market. Both companies are highly valued by investors, but which stock will come out on top in the long run remains to be seen.

NVIDIA or Alphabet?

When comparing NVIDIA 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 NVIDIA 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. NVIDIA has a dividend yield of 0.03%, while Alphabet has a dividend yield of 0.32%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. NVIDIA reports a 5-year dividend growth of -23.48% year and a payout ratio of 1.09%. 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 NVIDIA P/E ratio at 52.22 and Alphabet's P/E ratio at 24.75. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. NVIDIA P/B ratio is 49.98 while Alphabet's P/B ratio is 7.43.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, NVIDIA has seen a 5-year revenue growth of 1.68%, while Alphabet's is 1.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with NVIDIA's ROE at 116.71% and Alphabet's ROE at 31.66%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $132.54 for NVIDIA and $191.26 for Alphabet. Over the past year, NVIDIA's prices ranged from $47.32 to $152.89, with a yearly change of 223.10%. Alphabet's prices fluctuated between $131.55 and $196.89, with a yearly change of 49.67%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.