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Apple Inc. (AAPL)

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Apple Inc. (AAPL)

AAPL Inc. was founded in 1976 in Cupertino, CA. It is the second largest publicly traded company

in the world. AAPL is having a global existence and they are best known for their consumer electronics

product Mac, iPhone, iPad, iPod and other products.

Top two competitor of AAPL is as below:

1. Google Inc. (GOOG)2. Hewlett-Packard Company (HPQ)

Company Name Net Profit Margin ROE ROA P/E Ratio

AAPL 25.35% 38.41% 20.58% 9.87

GOOG 21.40% 16.61% 10.06% 24.56

HPQ -10.86% -41.00% 5.04% N/A

Based on above data, the AAPL is having 25.35% Net Profit Margin, while its competitor GOOG

and HPQ is having lower Net Profit Margin 21.40% and (10.86)% respectively. Net Profit Margin is a key

ratio and higher net profit margin means that a company is more efficient at converting sales into profit.

It shows that AAPL is more efficient than its competitors.

ROE is the most important ratio to determine the financial position of the company. AAPL s ROE

is 38.41% which is higher than its competitors GOOG and HPQ and average ROE [12% to 15%]. It shows

that AAPL is performing better than its competitors.

ROA explains how efficiently management use company assets to generate profit. AAPL ROA is

20.58% which is higher than the competitors ROA. It indicates that AAPL is making more profit per dollar

of its assets than its competitors.

P/E Ratio helps investors to decide to buy particular companys shares. AAPL P/E Ratio is 9.87%

which is lower than its competitor GOOGs P/E Ratio. It indicates investor is having less confidence to

buy AAPL share compare to its competitors.

7/30/2019 AAPL Security Study

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Apple Inc. (AAPL)

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In 2012, AAPL is having net income $41,733 million and gross profit is $68,682 million. AAPL is

maintaining higher retained of earnings compare to last year. It helps to invest more in Research &

Development and other areas which will eventually beneficial in future.

Company Name Beta

AAPL 0.66

GOOG 1.15

HPQ 1.54

Apple Inc. is having a beta of 0.66 which is lower than its competitors GOOG and HPQ. GOOG

and HPQ are having 1.15 and 1.54 beta respectively. Here GOOG and HPQ is having beta higher than 1

which indicates those are volatile stock. Its having higher risk and return and their prices are not stable.

AAPL is having a beta of 0.66 which is less than 1. If the beta is less than 1, which indicates its a stable

stock. AAPLs competitors are having higher risk and return due to volatile stock.

References

About Apple Inc.http://en.wikipedia.org/wiki/Apple_Inc.

Apples and its competitors Financial Ratio, Beta & stock pricehttp://finance.yahoo.com/q?s=AAPL&ql=1

http://finance.yahoo.com/q?s=GOOG&ql=1

http://finance.yahoo.com/q?s=HPQ&ql=1

Betahttp://en.wikipedia.org/wiki/Beta_(finance)

http://en.wikipedia.org/wiki/Apple_Inc.http://en.wikipedia.org/wiki/Apple_Inc.http://finance.yahoo.com/q?s=AAPL&ql=1http://finance.yahoo.com/q?s=AAPL&ql=1http://finance.yahoo.com/q?s=GOOG&ql=1http://finance.yahoo.com/q?s=GOOG&ql=1http://finance.yahoo.com/q?s=HPQ&ql=1http://finance.yahoo.com/q?s=HPQ&ql=1http://en.wikipedia.org/wiki/Beta_(finance)http://en.wikipedia.org/wiki/Beta_(finance)http://en.wikipedia.org/wiki/Beta_(finance)http://finance.yahoo.com/q?s=HPQ&ql=1http://finance.yahoo.com/q?s=GOOG&ql=1http://finance.yahoo.com/q?s=AAPL&ql=1http://en.wikipedia.org/wiki/Apple_Inc.