QUALCOMM vs Apple Which Is More Promising?

Qualcomm and Apple are two tech giants that have been embroiled in a legal battle over patents and royalties. Qualcomm, a leading chip manufacturer, has accused Apple of infringing on its patents and withholding royalty payments. Apple has countersued, claiming that Qualcomm's licensing practices are unfair and anti-competitive. The outcome of this legal dispute has had a significant impact on the stocks of both companies, as investors speculate on the potential financial implications. This ongoing legal battle has created uncertainty in the market surrounding the future of Qualcomm and Apple stocks.

QUALCOMM or Apple?

When comparing QUALCOMM 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 QUALCOMM 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. QUALCOMM has a dividend yield of 2.11%, while Apple has a dividend yield of 0.4%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. QUALCOMM reports a 5-year dividend growth of 5.33% year and a payout ratio of 36.35%. 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 QUALCOMM P/E ratio at 17.43 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. QUALCOMM P/B ratio is 6.73 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, QUALCOMM has seen a 5-year revenue growth of 1.06%, while Apple's is 0.82%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with QUALCOMM 's ROE at 41.20% and Apple's ROE at 137.87%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $156.63 for QUALCOMM and $246.24 for Apple. Over the past year, QUALCOMM 's prices ranged from $134.94 to $230.63, with a yearly change of 70.91%. 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.