Deep Dive: Growth Stocks vs Value Stocks — How to Compare Them and When to Buy Each
Every investor eventually faces the same fundamental question: should you buy the fast-growing company trading at a premium, or the established business selling at a discount? This debate — growth investing versus value investing — has shaped portfolio strategies for decades, and the answer is rarely as simple as picking one side. The distinction matters more than ever in February 2026. NVIDIA trades at a P/E ratio of 47x on the back of explosive AI-driven revenue growth. Tesla commands a 247x earnings multiple despite slowing vehicle deliveries. Meanwhile, Coca-Cola offers a steady 26x P/E with a 1.5% dividend yield, and Berkshire Hathaway — Warren Buffett's quintessential value play — trades at just 16x earnings with $177 per share in cash. These aren't abstract categories. They represent fundamentally different bets on what drives investment returns. This guide breaks down what growth and value stocks actually are, how to identify them using real financial metrics, and when each approach tends to outperform — illustrated with current data from eight major stocks spanning both categories.