Est 2013 EPS: $39.97------$46.12
Est 2014 EPS: $44.24------$53.42
Price / Share: $439.29----$829.43
Fwd P/E Ratio: 9.93--------15.53
EPS Growth Rate: 10.7%------15.8%
P/E/G Ratio: .93--------------.98
But $439.29 X (15.53/9.93) = $687.03
Except with AAPL you get the highest dividend payout ever, too.
Why Apple Is a Better Buy than Google
By Sneha Shah - May 2, 2013 | Tickers: AAPL, GOOG | 0 Comments
Sneha is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
Apple (NASDAQ: AAPL) and Google (NASDAQ: GOOG) are the two largest technology companies in the world by market value and rivals in a number of technology segments. These two companies used to be strong partners when Microsoft was the dominant force in the technology market. In fact, Google's manager Eric Schmidt used to sit on Apple's board before relations soured between the two companies. Now these companies compete fiercely with each other in the mobile devices market, which is growing at a furious pace. Now, with Microsoft relegated to 3rd place, Apple and Google are fighting for the pole position. Let's take a look at how that battle is going.
1. New product introduction - Apple has concentrated on fewer products but has completely changed the technology landscape with those products. Apple has a number of new products lined up for introduction in the coming year. Some of these products are the iWatch, a cheaper iPhone, iTV, a streaming music service, etc. Google keeps on coming up with new products, but the only major one coming up is the Google Glass.
2. Software - Both companies are good at making quality software, though Google has a broader product portfolio than Apple. Google has a strong presence in operating systems (Android, Chrome), business productivity, communication (Gmail), location (Google Maps), entertainment (Youtube), etc. Apple does not have such a broad portfolio, though Apple's iOS operating system is one of the best OS' in the world today.
3. Hardware - Apple is definitely better with its iPads and iPhones--Google is still finding its feet with the recent Motorola acquisition.
4. Government Regulation - Google is under heavy pressure from governments around the world due to concerns over privacy and monopolistic behavior. Google was recently forced to concede to the French government over Google News. It was forced out of China and is now facing strong scrutiny by Europe. Apple, on the other hand, has not faced the same pressures.
5. Competitive barriers - Google has high barriers in its core Internet search business, while Apple is facing huge competition in both iPads and iPhones. Meanwhile, Apple is facing increased competition in its core smartphone and tablet markets. While Apple has a superior product and a fanatic following, the sheer amount competition means that Apple will find it difficult to grow quickly in these areas.
6. Valuation - Apple is almost 50% cheaper than Google - Apple is trading at a very cheap valuation with a forward P/E of just ~8x. The reason for this is concerns about Apple's prospects, given the strong competition in its core segments. Google, on the other hand, is expensive compared to the rest of the mega-cap technology stocks. Google trades at a forward P/E of ~15x, which is almost double that of Apple, and Google's P/S multiple of 5x is more than two times Apple's P/S multiple of 2.4x. Apple has a market capitalization of $394 billion compared to Google's $257 billion. Google's search is still growing in double digits, while its other services like Google Map and Youtube are ramping up.
7. Stock performance - Google has heavily outperformed Apple in the last year, which makes Apple more attractive. Google has given a return of ~25% compared to the ~33% loss given by Apple. On the other hand, Apple has heavily outperformed Google over a longer timeframe. In the last 10 years, Apple has given an astounding ~6000% return compared to the ~622% return given by Google.