NVIDIA vs Apple Which Is More Profitable?

NVIDIA and Apple are two of the most prominent and innovative technology companies in the world, both known for their cutting-edge products and innovative solutions. Both companies have seen tremendous growth and success in the stock market, with NVIDIA focusing on graphics processing units and artificial intelligence technology, while Apple is a leader in consumer electronics and software. Investors often compare the two stocks, analyzing their financial performance, market trends, and growth potential to make informed investment decisions.

NVIDIA or Apple?

When comparing NVIDIA 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 NVIDIA 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. NVIDIA has a dividend yield of 0.03%, while Apple has a dividend yield of 0.44%. 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 1.02%. 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 NVIDIA P/E ratio at 67.82 and Apple's P/E ratio at 36.44. 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 61.82 while Apple's P/B ratio is 59.97.

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 Apple's is 0.82%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with NVIDIA's ROE at 115.52% and Apple's ROE at 137.87%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $145.90 for NVIDIA and $222.76 for Apple. Over the past year, NVIDIA's prices ranged from $45.01 to $149.77, with a yearly change of 232.75%. Apple's prices fluctuated between $164.08 and $237.49, with a yearly change of 44.74%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.