Very different companies. Apple is mainly a hardware manufacturer, with music and TV services that are very much tied in to said hardware. Google focuses on software and services, many of which are largely hardware agnostic. And they have many companies creating and selling hardware that runs their software. On top of this, they absolutely dominate online advertising, and their services are a part of countless online entities. Further, they have their fingers in all sorts of technologies, e.g. self-driving cars. Bottom line: Google has a higher P/E because they have far, far more growth potential than Apple at this point. Not that Apple won't grow, but they just aren't nearly as dynamic or innovative an organization.
Apple is mainly a hardware company, but they are growing content sales by orders of magnitude. They also paid app developers 7 billion dollars in 2012 for content sales. How much did Google pay android developers in 2012? Also, Goolge pays AAPL 1 billion a year to be the default search engine on iOS. Apple has transformed the smart phone industry, the digital music player industry and the tablet industry. Apple controls the lions share of all profits made in global smart phone and tablet sales.
So far, Google has proven to be a one trick pony only monetizing search/ad. And that business is clearly slowing as the past two quarterly misses would indicate for Google. They don't make any money selling android to OEM's, the Motorola acquisition has been a disaster, and all their pipe dream innovations have not come to fruition.
It is ludicrous that Apple (the dominant profitable company in mobile computing) sells at a 6 p/e after cash and one trick pony Google in a slowing to flat industry sells at 26 times.
The market has been irrational for about a year now on these two stocks. I think the market will soon come back to its senses -- before the end of the year.
I'll also add that Google is doing to Apple in the mobile device space what Microsoft did to Apple in the desktop space in the 1980s/1990s. Apple's closed-off ecosystem is once again becoming their downfall.
Aaple makes a #$%$ phone that is losing market share while Android is growing at unprecedented rates, they have Glass, driverless cars. Apple does nothing except make small phones no one wants anymore
No, they don't have glass or driverless cars. Those are pipe dreams that are not marketed products. Apple makes 72% of ALL GLOBAL SMART PHONE PROFITS and 91% of ALL GLOBAL TABLET PROFITS!!!! WAKE THE F UP!!!
Aapl pe was higher last year but it sank share price from $705.00 to less than $400.00 before starting to rise again.Where as GOOG keeps flying up from last years price of $770.00 to today being over $911.75. cuffs