Xerox vs Apple Which Outperforms?

Xerox and Apple are two well-known companies in the technology sector that have been competing in the stock market for years. Xerox, founded in 1906, is a leader in the printing and digital document solutions industry, while Apple, founded in 1976, is renowned for its innovative products such as the iPhone, iPad, and Mac computers. Investors often compare the performance of Xerox and Apple stocks to determine which company offers better potential for growth and return on investment.

Xerox or Apple?

When comparing Xerox 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 Xerox 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. Xerox has a dividend yield of 11.29%, while Apple has a dividend yield of 0.4%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Xerox reports a 5-year dividend growth of 0.00% year and a payout ratio of -10.38%. 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 Xerox P/E ratio at -0.81 and Apple's P/E ratio at 39.90. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Xerox P/B ratio is 0.73 while Apple's P/B ratio is 65.67.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Xerox has seen a 5-year revenue growth of 0.17%, while Apple's is 0.82%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Xerox's ROE at -57.57% and Apple's ROE at 137.87%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $8.81 for Xerox and $246.26 for Apple. Over the past year, Xerox's prices ranged from $8.02 to $19.78, with a yearly change of 146.63%. Apple's prices fluctuated between $164.08 and $250.80, with a yearly change of 52.85%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.