Microsoft Corporation (MSFT), Hewlett-Packard Company (HPQ) – EEI: Why Your Investment May be a Dud

One last metric might show a different result for these companies. HP shows the highest FCF yield at 21.8% of any of these companies. Microsoft Corporation (NASDAQ:MSFT) and NVIDIA Corporation (NASDAQ:NVDA) are next with 9.7% and 9.6%, respectively. Google shows a FCF yield of just 4.4%, though it is the most popular and most widely-used company of the bunch.

Google clearly has the most expensive stock out of these three, bringing up the bottom end on two of these three metrics used. However, good investors know this isn’t the whole story. We all know that these stocks must also perform well in order to please shareholders. The graph below shows how these companies have performed in the past year.

GOOG data by YCharts

In general, I would suggest Google as being the most solid company, although it is clearly the most expensive. Microsoft is clearly one of the largest companies, although its earnings are obviously in the negative. HP and Nvidia offer more risk, but seem to be rising in the industry. It’s hard to give a ranking on which company is a buy, sell, or hold, looking at these. They are so widespread in every area, it is largely up to what the investor is looking for.

The Foolish bottom line

The one thing we can clearly see about these companies is this: Microsoft Corporation (NASDAQ:MSFT) is not exciting, engaging, or innovative in comparison to Hewlett-Packard Company (NYSE:HPQ). It is clearly larger and more established, but Nvidia and HP are on the rise. Google is just a monster who refuses to be tamed. Nvidia is certainly not going anywhere either.

The article EEI: Why Your Investment May be a Dud originally appeared on Fool.com and is written by Tyler Wofford.

Tyler Wofford has no position in any stocks mentioned. The Motley Fool owns shares of Microsoft. Tyler is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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