WPP vs Alphabet Which Is More Reliable?

WPP and Alphabet are two major players in the technology and advertising industries, with both companies holding significant influence and market share. WPP is a multinational advertising and PR conglomerate, while Alphabet is the parent company of Google and other technology companies. Investors often compare the stocks of these two companies to determine which offers the best opportunity for growth and returns. Each company has its own strengths and weaknesses, creating an interesting dynamic for investors to consider when making investment decisions.

WPP or Alphabet?

When comparing WPP and Alphabet, 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 WPP and Alphabet.

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. WPP has a dividend yield of 3.47%, while Alphabet has a dividend yield of 0.31%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. WPP reports a 5-year dividend growth of -9.86% year and a payout ratio of 207.87%. On the other hand, Alphabet reports a 5-year dividend growth of 0.00% year and a payout ratio of 5.22%.

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 WPP P/E ratio at 233.35 and Alphabet's P/E ratio at 25.47. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. WPP P/B ratio is 13.57 while Alphabet's P/B ratio is 7.65.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, WPP has seen a 5-year revenue growth of 0.55%, while Alphabet's is 1.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with WPP's ROE at 5.92% and Alphabet's ROE at 31.66%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $55.81 for WPP and $186.26 for Alphabet. Over the past year, WPP's prices ranged from $43.02 to $57.37, with a yearly change of 33.36%. Alphabet's prices fluctuated between $131.06 and $196.89, with a yearly change of 50.23%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.