Investing in the market is a process of comparative analysis and selection. You need to choose the best investment that best meets your investment goals from a wide range of options. Today we're going to compare Microsoft Corporation (NASDAQ: MSFT) and Apple (AAPL). Both are tech giants and are among the two largest companies in the stock market based on market capitalization. The price-earnings ratio of both companies' shares is approximately 28 times.
However, judging by the current level of trading, Microsoft is clearly a more worthwhile stock to own in the near and medium term. Here are the four core reasons for making this assessment.
Growth prospects
Microsoft clearly has better growth prospects for at least the next few years. Currently, the consensus of analysts predicts Apple's profit growth of 7.5% in fiscal year 2024, and revenue growth of only 1%. They forecast sales growth of just over 6% and profit growth of 9.5%. On the other hand, Microsoft expects revenue growth of 15% and profit growth of 20% in fiscal year 2024, slightly higher than 14% in fiscal year 2025, and profit growth of 12.5%. As far as growth comparisons are concerned, Microsoft is the clear winner.
Focus on artificial intelligence
Earlier, Apple released financial reports. Due to factors such as falling product sales, market expectations were not ideal, and stock prices also fell. This Tuesday, Apple released new products, launched the latest versions of the iPad Pro and iPad Air tablets, as well as the new Apple Penci...