Whirlpool vs General Electric Which Is More Promising?

Whirlpool Corporation and General Electric Company are two major players in the home appliance industry, with each company offering a diverse range of products to consumers worldwide. Investors looking to capitalize on the market potential of these companies may be interested in comparing their stocks. Whirlpool's focus on developing innovative and eco-friendly appliances has positioned it as a leader in the industry, while General Electric's diversified portfolio and long-standing reputation for quality products make it a solid investment option. This article will delve into the financial performance, market trends, and potential growth prospects of both Whirlpool and General Electric stocks.

Whirlpool or General Electric?

When comparing Whirlpool and General Electric, 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 Whirlpool and General Electric.

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. Whirlpool has a dividend yield of 6.2%, while General Electric has a dividend yield of 0.5%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Whirlpool reports a 5-year dividend growth of 9.00% year and a payout ratio of 68.04%. On the other hand, General Electric reports a 5-year dividend growth of -2.87% year and a payout ratio of 12.65%.

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 Whirlpool P/E ratio at 11.13 and General Electric's P/E ratio at 32.29. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Whirlpool P/B ratio is 2.05 while General Electric's P/B ratio is 10.69.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Whirlpool has seen a 5-year revenue growth of 0.13%, while General Electric's is -0.44%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Whirlpool's ROE at 20.64% and General Electric's ROE at 26.39%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $110.50 for Whirlpool and $183.71 for General Electric. Over the past year, Whirlpool's prices ranged from $84.18 to $125.68, with a yearly change of 49.30%. General Electric's prices fluctuated between $91.55 and $194.80, with a yearly change of 112.78%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.