Microsoft (MSFT) Competitors

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

Do analysts prefer MSFT or AAPL?

Microsoft presently has a consensus price target of $618.47, indicating a potential upside of 20.42%. Apple has a consensus price target of $248.29, indicating a potential upside of 0.21%. Given Microsoft's stronger consensus rating and higher possible upside, equities analysts clearly believe Microsoft is more favorable than Apple.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Microsoft	0 Sell rating(s)	2 Hold rating(s)	31 Buy rating(s)	1 Strong Buy rating(s)	2.97
Apple	2 Sell rating(s)	12 Hold rating(s)	15 Buy rating(s)	4 Strong Buy rating(s)	2.64

Does the media favor MSFT or AAPL?

In the previous week, Microsoft had 2 more articles in the media than Apple. MarketBeat recorded 196 mentions for Microsoft and 194 mentions for Apple. Apple's average media sentiment score of 1.14 beat Microsoft's score of 1.10 indicating that Apple is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Microsoft	131 Very Positive mention(s)	16 Positive mention(s)	31 Neutral mention(s)	5 Negative mention(s)	3 Very Negative mention(s)	Positive
Apple	139 Very Positive mention(s)	13 Positive mention(s)	24 Neutral mention(s)	8 Negative mention(s)	2 Very Negative mention(s)	Positive

Do insiders and institutionals hold more shares of MSFT or AAPL?

71.1% of Microsoft shares are held by institutional investors. Comparatively, 67.7% of Apple shares are held by institutional investors. 0.0% of Microsoft shares are held by company insiders. Comparatively, 0.1% of Apple shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Which has higher valuation & earnings, MSFT or AAPL?

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

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Microsoft	$281.72B	13.55	$101.83B	$13.64	37.65
Apple	$391.04B	9.40	$93.74B	$6.59	37.60

Which has more volatility and risk, MSFT or AAPL?

Microsoft has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500. Comparatively, Apple has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500.

Is MSFT or AAPL a better dividend stock?

Microsoft pays an annual dividend of $3.32 per share and has a dividend yield of 0.6%. Apple pays an annual dividend of $1.04 per share and has a dividend yield of 0.4%. Microsoft pays out 24.3% of its earnings in the form of a dividend. Apple pays out 15.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Microsoft has increased its dividend for 23 consecutive years and Apple has increased its dividend for 14 consecutive years. Microsoft is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Is MSFT or AAPL more profitable?

Microsoft has a net margin of 36.15% compared to Apple's net margin of 24.30%. Apple's return on equity of 170.91% beat Microsoft's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Microsoft	36.15%	32.44%	18.20%
Apple	24.30%	170.91%	31.94%

Summary

Microsoft beats Apple on 12 of the 20 factors compared between the two stocks.