Microsoft (MSFT) Competitors

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

Do insiders & institutionals believe in MSFT or AAPL?

71.1% of Microsoft shares are owned by institutional investors. Comparatively, 67.7% of Apple shares are owned by institutional investors. 0.0% of Microsoft shares are owned by insiders. Comparatively, 0.1% of Apple shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Does the media prefer MSFT or AAPL?

In the previous week, Apple had 2 more articles in the media than Microsoft. MarketBeat recorded 256 mentions for Apple and 254 mentions for Microsoft. Microsoft's average media sentiment score of 0.99 beat Apple's score of 0.91 indicating that Microsoft is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Microsoft	159 Very Positive mention(s)	23 Positive mention(s)	37 Neutral mention(s)	19 Negative mention(s)	12 Very Negative mention(s)	Positive
Apple	157 Very Positive mention(s)	20 Positive mention(s)	57 Neutral mention(s)	17 Negative mention(s)	4 Very Negative mention(s)	Positive

Which has more volatility & risk, MSFT or AAPL?

Microsoft has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500. Comparatively, Apple has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500.

Do analysts prefer MSFT or AAPL?

Microsoft currently has a consensus target price of $544.07, indicating a potential upside of 7.68%. Apple has a consensus target price of $235.11, indicating a potential upside of 9.66%. Given Apple's higher possible upside, analysts clearly believe Apple is more favorable than Microsoft.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Microsoft	0 Sell rating(s)	3 Hold rating(s)	29 Buy rating(s)	0 Strong Buy rating(s)	2.91
Apple	2 Sell rating(s)	11 Hold rating(s)	16 Buy rating(s)	2 Strong Buy rating(s)	2.58

Is MSFT or AAPL more profitable?

Microsoft has a net margin of 35.79% compared to Apple's net margin of 24.30%. Apple's return on equity of 167.24% beat Microsoft's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Microsoft	35.79%	32.74%	18.13%
Apple	24.30%	167.24%	31.35%

Is MSFT or AAPL a better dividend stock?

Microsoft pays an annual dividend of $3.32 per share and has a dividend yield of 0.7%. Apple pays an annual dividend of $1.04 per share and has a dividend yield of 0.5%. Microsoft pays out 25.7% of its earnings in the form of a dividend. Apple pays out 16.2% 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.

Which has better earnings and valuation, MSFT or AAPL?

Apple has higher revenue and earnings than Microsoft. 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	$245.12B	15.32	$88.14B	$12.94	39.05
Apple	$391.04B	8.19	$93.74B	$6.42	33.40

Summary

Microsoft and Apple tied by winning 10 of the 20 factors compared between the two stocks.