Sun vs Microsoft

Investors often find themselves debating between two technology giants when considering where to put their money: Sun Microsystems and Microsoft. Both companies have a strong presence in the technology industry, but their stocks offer different opportunities for growth and stability. Sun Microsystems, known for its innovative hardware and software solutions, has a history of volatility in the market. On the other hand, Microsoft, with its dominant position in operating systems and productivity software, provides a more stable investment option. Investors must weigh the potential risks and rewards of each stock before making a decision.

Sun or Microsoft?

When comparing Sun 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 Sun 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. Sun has a dividend yield of 1.21%, while Microsoft has a dividend yield of 0.72%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Sun 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 24.70%.

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 Sun P/E ratio at -219.44 and Microsoft's P/E ratio at 35.31. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Sun P/B ratio is 4.35 while Microsoft's P/B ratio is 11.59.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Sun has seen a 5-year revenue growth of -0.60%, while Microsoft's is 0.99%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Sun's ROE at -2.13% and Microsoft's ROE at 35.95%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥7350.00 for Sun and $415.26 for Microsoft. Over the past year, Sun's prices ranged from ¥1933.00 to ¥8300.00, with a yearly change of 329.38%. Microsoft's prices fluctuated between $324.39 and $468.35, with a yearly change of 44.38%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.