Walt Disney vs Apple Which Outperforms?

Walt Disney and Apple are two iconic American companies that have long been considered lucrative investments, each with their own unique strengths and market appeal. Disney has a strong foothold in the entertainment and media industry, with a diverse portfolio of renowned brands and franchises. Apple, on the other hand, is a leader in the technology sector, known for its innovative products and loyal customer base. Both stocks have historically performed well, but recent market trends and shifts in consumer behavior may impact their future growth potential. Let's delve deeper into the financial performance and outlook of Walt Disney and Apple stocks to determine which may be the better investment option.

Walt Disney or Apple?

When comparing Walt Disney 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 Walt Disney 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. Walt Disney has a dividend yield of 0.74%, while Apple has a dividend yield of 0.55%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Walt Disney reports a 5-year dividend growth of 0.00% year and a payout ratio of 11.49%. 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 Walt Disney P/E ratio at 38.46 and Apple's P/E ratio at 36.29. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Walt Disney P/B ratio is 1.83 while Apple's P/B ratio is 59.74.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Walt Disney has seen a 5-year revenue growth of 0.23%, while Apple's is 0.82%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Walt Disney's ROE at 4.78% and Apple's ROE at 137.87%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $99.00 for Walt Disney and $221.50 for Apple. Over the past year, Walt Disney's prices ranged from $83.91 to $123.74, with a yearly change of 47.47%. 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.