Does Apple ($AAPL) > (Microsoft ($MSFT) + Google ($GOOG) + Amazon ($AMZN) + Facebook $FB) ?

avatar By: IS
Date posted: 08.28.2012 (5:00 am) | Write a Comment  (5 Comments)

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Believe me, I’m a huge fan of Apple (AAPL). Not just its amazing products (I own an iphone and ipad) but the stock. I called those who didn’t hold it crazy, put it at the top of my technology rankings, picked it several times in long & short tech stock picks and as one of my 4 picks for the stock picking contest (which I currently lead thanks to that pick). Still though, I can’t say that I feel as convinced when I see this:

AAPL > MSFT+GOOG+AMZN+FB

That is how those companies are being valued in the markets right now. Would you prefer owning Apple of all of those? In other words,

What group of products & teams would you prefer between these two:

Amazon.com, the world’ largest online store and emerging distribution powerhouse
Kindle tablets
Audible.com
Zappos
Windows Operating System
Office suite
xBox
Bing.com (2nd most popular search engine)
Google.com (top popular search engine)
Google docs software
Android mobile O/S
Motorola
Google+
Google’s vast projects
Facebook (top social network)
Instagram
Etc, Etc, Etc

Or

iPhone
iPad
Macbook
iPod
Etc

Don’t get me wrong, those Apple products are amazing, they dominate their markets for the most part, they continue to grow and there are projects for Apple to launch its anticipated Apple TV. All of that being said, simply looking at it, it’s difficult to imagine that I could pick Apple if I were given the choice between those 2.. How about you?

Take a look at the financials of these companies. First the data:

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Sales:

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Income:

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Then the charts:

Sales:

Income:

It’s quite interesting. In all but the last 2 quarters, the group has outperformed Apple in terms of income while Apple only beat on revenues once. So my question to you is quite simple. Which one would you pick. Would you buy Apple or Google+Microsoft+Facebook+Amazon. I personally could not pick Apple in such a case… does that mean Apple is overvalued? Or are some (or all) of the others undervalued?

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5 Comments

  1. Comment by PK de Cville — August 28, 2012 @ 5:52 am
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    Which one would you pick over the next 3 years?

    Henry Ford or the others?

    Thomas Edison or ???

    Genghis Khan or ???

    Mohammad Ali or ???

  2. Comment by PK de Cville — August 28, 2012 @ 6:13 am
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    Or you could count employees:

    Apple near 50,000..

    The others: over 200,000.

    I guess Apple loses then.

    Is this article for real?

  3. Comment by jim m — August 28, 2012 @ 6:39 am
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    To simplify things, give the other four the same amount of shares outstanding, and then adjust the price accordingly. That will show you in simple terms how much more value the market gives to AAPL vs the others.

  4. Comment by SK — August 28, 2012 @ 11:10 am
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    IMO, Another aspect that forces me to be cautious with apple is its ability to continue to innovate without Steve Jobs. Jobs started a new revolution, can Tim keep it up and take it to the next level. I am going to play a waiting game.

  5. Comment by Gen Y Dividends — August 28, 2012 @ 6:49 pm
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    Am I the only one that thinks MSFT is a better value than AAPL? Greater yield, lower P/E, and potential for future growth in mobile and the living room wars to offset lagging growth in the PC business…

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