Snap vs Moody's Which Is a Better Investment?

Snap Inc. and Moody's Corporation are two prominent companies in the financial sector with unique business models and market positions. Snap Inc., the parent company of popular social media platform Snapchat, has experienced explosive growth in recent years, capturing the attention of investors and users worldwide. On the other hand, Moody's Corporation is a global provider of credit ratings, research, and financial services, playing a crucial role in assessing the creditworthiness of companies and governments. Both companies have seen fluctuations in their stock prices, making them intriguing options for investors seeking opportunities in the stock market.

Snap or Moody's?

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

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. Snap has a dividend yield of -%, while Moody's has a dividend yield of 0.69%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Snap reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Moody's reports a 5-year dividend growth of 11.84% year and a payout ratio of 30.20%.

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 Snap P/E ratio at -21.76 and Moody's's P/E ratio at 44.50. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Snap P/B ratio is 9.41 while Moody's's P/B ratio is 22.82.

Growth Investors:

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

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $12.20 for Snap and $487.28 for Moody's. Over the past year, Snap's prices ranged from $8.29 to $17.90, with a yearly change of 115.92%. Moody's's prices fluctuated between $360.05 and $503.95, with a yearly change of 39.97%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.