Smartsheet vs Microsoft Which Is a Better Investment?

Smartsheet and Microsoft are two leading companies in the technology sector, each offering unique products and services to meet the needs of businesses and individuals. Smartsheet, known for its innovative project management software, has been experiencing significant growth in recent years, while Microsoft, a tech giant with a diverse portfolio of products including cloud services and software applications, remains a solid choice for investors seeking stability and growth potential. Let's take a closer look at how these two stocks compare in terms of performance and potential for investment.

Smartsheet or Microsoft?

When comparing Smartsheet 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 Smartsheet 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. Smartsheet 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. Smartsheet 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 24.63%.

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 Smartsheet P/E ratio at -182.46 and Microsoft's P/E ratio at 34.33. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Smartsheet P/B ratio is 11.53 while Microsoft's P/B ratio is 10.80.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Smartsheet has seen a 5-year revenue growth of -0.03%, while Microsoft's is 0.99%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Smartsheet's ROE at -6.87% and Microsoft's ROE at 34.56%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $55.88 for Smartsheet and $416.00 for Microsoft. Over the past year, Smartsheet's prices ranged from $35.52 to $56.55, with a yearly change of 59.21%. Microsoft's prices fluctuated between $362.90 and $468.35, with a yearly change of 29.06%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.