When weighing stock investment options, it can be hard to know which company is the better choice. Apple and Disney are two of the biggest and most recognizable names in their respective industries and can be great investments for the right investor. Let’s take a closer look at each company’s stock and decide whether Apple or Disney is the better stock.
Background on Apple
Apple Inc. is a multinational electronic and software design company established in 1977 by Steve Jobs and Steve Wozniak. Since then, Apple has grown to become the largest publicly traded company in the world, with a market value of over $2 trillion. With a long history of innovation, Apple is known for its trailblazing products such as the iPhone, iPad, and MacBook. The company also produces a wide range of digital products and services, including the Apple Store and App Store. Apple currently has a cash stockpile of over $200 billion, making it one of the most valuable companies in the world.
Background on Disney
The Walt Disney Company is a multinational media and entertainment conglomerate founded by Walt Disney in 1923. For almost a hundred years, Disney has been an industry leader in children’s entertainment, producing films, television shows, theme parks, books, music, and more. While Disney is known for producing family-friendly content, the company has also expanded into other markets, such as streaming platforms and cruise lines. Disney owns several high-profile brands, such as Marvel, Pixar, and Lucasfilm, and is one of the world’s largest media companies, with a total market capitalization of over $270 billion.
Comparing Apple and Disney Stock
When comparing Apple and Disney stock, there are a few key factors to consider. Let’s take a look at each of these factors in detail.
Financials:
When analyzing stock, one of the most important factors to look at is the company’s financials. Apple and Disney have both reported strong financial performances in recent years, resulting in healthy stock prices. Apple has produced strong revenue growth, increasing its annual revenue from $229 billion in 2018 to $275 billion in 2020. Meanwhile, Disney has reported a more modest but still impressive revenue growth, with a 5% year-over-year increase from 2018 to 2020.
Dividend Yields:
The dividend yield of a company’s stock is also an important consideration for investors. The dividend yield is the amount of money that a company pays out in dividends per share of stock. Apple’s dividend yield stands at around 0.9%, while Disney’s is slightly higher at 1.3%. This makes Disney a slightly better option for investors who are looking for a steady stream of income from their stock investments.
Returns:
When considering stock investments, the expected return is an important factor. Apple has produced strong returns for shareholders, with its stock climbing by almost 100% since 2018. On the other hand, Disney’s stock has grown more slowly, but still delivered solid returns over the past few years, with the stock price increasing by around 20%.
Risk:
When investing in any stock, it is important to consider the risks associated with each company. Apple is considered a relatively safe stock, as it has a long track record of innovation and continuous growth. Meanwhile, Disney’s stock can be slightly riskier due to its dependence on the media and entertainment industry.
Both Apple and Disney are great investments for the right investor. When considering which company’s stock is the better option, it is important to consider the company’s financials, dividend yield, returns, and risk. Apple’s stock has produced strong returns and is considered a safe investment option, while Disney’s dividend yield is higher and can be a good choice for dividend investors. Ultimately, the decision of which stock to buy will depend on your individual goals and risk tolerance.
