Apple vs Microsoft: Profit Growth, Earnings and Sales Compared

Strategic Insights -

Apple and Microsoft, two giants in the technology sector, have been showing remarkable growth in their stock prices and earnings. Despite their similar performance this year, Microsoft seems to have an edge over Apple in terms of profit growth, sales growth, and long-term returns. Over the past 10 years, Microsoft's total return, including dividends, has been higher than Apple's, with a 1214.4% gain compared to Apple's 1004.5%. However, over the past 5 years, Apple's total return has been higher, at 379.8% compared to Microsoft's 258.3%.

Key Takeaways:

  • Apple and Microsoft have shown remarkable stock price growth, with both companies' shares increasing by almost 20% in 2024.
  • Over the past 10 years, Microsoft's total return, including dividends, has been higher than Apple's, at 1214.4% compared to 1004.5%.
  • In the past 5 years, Apple's total return has been higher, at 379.8% compared to Microsoft's 258.3%.
  • Microsoft is expected to grow earnings by approximately 50% more per year than Apple, according to Tradequotex.com analyst Cory Mitchell.
  • Microsoft has a better PEG ratio (2.6) compared to Apple's (4.1), indicating that Microsoft is the better value.
  • Microsoft is trading at a P/E of 40.4 and a forward P/E of 38.1, while Apple is trading at a P/E of 36.3 and a forward P/E of 34.6.
  • Both companies are trading at very high valuations currently, but Microsoft is priced more attractively than Apple.
  • Microsoft's predicted 5-year average annual earnings increase is 15%, compared to Apple's 9.7%.
  • Microsoft's 5-year average annual revenue increase has been 13.4%, compared to Apple's 8%.

Statistics:

  • 5-Year Average Annual Earnings Increase (past five years): AAPL 16.9% per year, MSFT 17.9% per year.
  • Forecasted 5-Year Average Annual Earnings Increase (analyst expectations for the next five years): AAPL 9.7% per year, MSFT 15% per year.
  • 5-Year Average Annual Revenue Increase (last five years): AAPL 8% per year, MSFT 13.4% per year.
  • Apple's total return over the past 5 years: 379.8%.
  • Microsoft's total return over the past 5 years: 258.3%.
  • Apple's PEG ratio: 4.1.
  • Microsoft's PEG ratio: 2.6.

Sources:

  • Tradequotex.com
  • FinancialExpress.com