Contrasting Apple (NASDAQ:AAPL) & Dell Technologies (DVMT)

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Apple (NASDAQ: AAPL) and Dell Technologies (NYSE:DVMT) are both large-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, earnings, profitability, institutional ownership and analyst recommendations.

Analyst Ratings

This is a summary of current ratings for Apple and Dell Technologies, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Apple 1 15 28 2 2.67
Dell Technologies 0 1 3 0 2.75

Apple presently has a consensus target price of $206.82, suggesting a potential upside of 8.40%. Dell Technologies has a consensus target price of $113.00, suggesting a potential upside of 28.54%. Given Dell Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe Dell Technologies is more favorable than Apple.

Profitability

This table compares Apple and Dell Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Apple 21.55% 39.97% 14.27%
Dell Technologies -3.69% 27.56% 3.63%

Risk and Volatility

Apple has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500. Comparatively, Dell Technologies has a beta of -0.33, meaning that its share price is 133% less volatile than the S&P 500.

Institutional and Insider Ownership

58.1% of Apple shares are owned by institutional investors. Comparatively, 22.9% of Dell Technologies shares are owned by institutional investors. 0.1% of Apple shares are owned by company insiders. Comparatively, 46.0% of Dell Technologies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Apple and Dell Technologies’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Apple $229.23 billion 4.22 $48.35 billion $9.21 20.72
Dell Technologies $78.66 billion 0.86 -$3.73 billion $6.17 14.25

Apple has higher revenue and earnings than Dell Technologies. Dell Technologies is trading at a lower price-to-earnings ratio than Apple, indicating that it is currently the more affordable of the two stocks.

Dividends

Apple pays an annual dividend of $2.92 per share and has a dividend yield of 1.5%. Dell Technologies does not pay a dividend. Apple pays out 31.7% of its earnings in the form of a dividend. Apple has increased its dividend for 5 consecutive years.

Summary

Apple beats Dell Technologies on 14 of the 18 factors compared between the two stocks.

Apple Company Profile

Apple Inc. designs, manufactures, and markets mobile communication and media devices, and personal computers to consumers, and small and mid-sized businesses; and education, enterprise, and government customers worldwide. The company also sells related software, services, accessories, networking solutions, and third-party digital content and applications. It offers iPhone, a line of smartphones; iPad, a line of multi-purpose tablets; and Mac, a line of desktop and portable personal computers, as well as operating systems comprising iOS, macOS, watchOS, and tvOS. The company also provides iWork, an integrated productivity suite that helps users create, present, and publish documents, presentations, and spreadsheets; and other application software, such as Final Cut Pro, Logic Pro X, and FileMaker Pro. In addition, it offers Apple TV that connects to consumers' TV and enables them to access digital content directly for streaming high definition video, playing music and games, and viewing photos; Apple Watch, a personal electronic device; and iPod touch, a flash memory-based digital music and media player. Further, the company sells Apple-branded and third-party accessories, such as headphones, displays, storage devices, Beats products, and other connectivity and computing products and supplies. Additionally, it offers iCloud, a cloud service that stores music, photos, contacts, calendars, mail, documents, and others; AppleCare, which offers support options for its customers; and Apple Pay, a cashless payment service. The company sells and delivers digital content and applications through the iTunes Store, App Store, Mac App Store, TV App Store, iBooks Store, and Apple Music. It also sells its products through its retail and online stores, and direct sales force, as well as through third-party cellular network carriers, wholesalers, retailers, and value-added resellers. Apple Inc. was founded in 1977 and is headquartered in Cupertino, California.

Dell Technologies Company Profile

Dell Technologies Inc. designs, develops, manufactures, markets, sells, and supports information technology (IT) products and services worldwide. It operates through three segments: Client Solutions Group (CSG), Infrastructure Solutions Group (ISG), and VMware. The CSG segment offers hardware, such as desktop personal computers, notebooks, and workstations; and branded peripherals, including monitors and projectors; third-party software and peripherals; and attached software, peripherals, and services comprising support and deployment, configuration, and extended warranty services. The ISG segment provides traditional and next-generation storage solutions consisting of flash arrays, scale-out files, object platforms, and other software solutions; and rack, blade, tower, and hyper scale servers. The VMware segment offers compute, cloud, mobility, networking and security infrastructure software, including software-defined data center products, such as vSphere, vSAN, VMware NSX, and vRealize products; VMware Cloud solution that enables customers to run, manage, connect, and secure applications across private and public clouds; and end-user computing products comprising Workspace ONE solution, which enables IT organizations to deliver access to applications, data, and devices. The company also provides cybersecurity solutions; intelligence-driven information security solutions; cloud-native platform for software development and IT operations; cloud-based integration services; cloud software and infrastructure-as-a-service solutions that enable customers to migrate, run, and manage mission-critical applications in cloud-based IT environments; and financing services. The company was formerly known as Denali Holding Inc. and changed its name to Dell Technologies Inc. in August 2016. Dell Technologies Inc. was founded in 1984 and is headquartered in Round Rock, Texas.

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