Which is a better stock to buy Apple or Microsoft? (2024)

Which is a better stock to buy Apple or Microsoft?

As Dessai noted, Microsoft is trading at a higher multiple. Its trailing 12-month P/E ratio is 36.76, while Apple is trading at a ratio of 26.51, significantly lower. In simple terms what this means is that Microsoft must grow earnings much faster than Apple to achieve a similar return on investment.

Is Apple more profitable than Microsoft?

In the last 12 months, Apple achieved earnings before interest, taxes, depreciation, and amortization (EBITDA) of $125.8 billion, while Microsoft delivered around $109 billion.

Is it worth it to buy Apple stock?

With its 3-star rating, we believe Apple's stock is fairly valued compared with our long-term fair value estimate of $160 per share. Our valuation implies a fiscal 2024 adjusted price/earnings multiple of 25 times, a fiscal 2024 enterprise value/sales multiple of 7 times, and a fiscal 2024 free cash flow yield of 4%.

Is Microsoft stock a good long-term investment?

17 analysts revised their earnings estimate upwards in the last 60 days for fiscal 2024. The Zacks Consensus Estimate has increased $0.49 to $11.63. MSFT boasts an average earnings surprise of 8.8%. Earnings for Microsoft are forecasted to see growth of 18.6% for the current fiscal year as well.

Who pays better dividends, Apple or Microsoft?

Microsoft has the best dividend yield: $0.75 per share each quarter, which translates to an annual yield of 0.74%. Holding Apple stock will yield 0.49% annually, whereas Nvidia stock yields 0.03%.

Is Microsoft a better investment than Apple?

Microsoft 10-Year Performance

With its closing price of $402.65 on March 5, 2024, it recorded an incredible gain of 1,148%. This is even more than Apple's outsized gain of 916% and marks a more than 12x return for Microsoft investors who held the stock for the full 10 years.

Is Microsoft better than Apple stock?

However, Microsoft's more significant priority on digital markets like cloud computing and AI makes it less vulnerable to macroeconomic headwinds and potentially the more reliable buy. Meanwhile, earnings-per-share estimates indicate Microsoft has more growth potential than Apple in the near term.

What will Apple stock be worth in 5 years?

Is Microsoft a good buy today?

Microsoft stock has received a consensus rating of buy. The average rating score is Aaa and is based on 96 buy ratings, 1 hold ratings, and 2 sell ratings.

Is Apple stock a good 10 year investment?

Apple 10-Year Performance

Patient investors who held the stock through all of its ups and downs were rewarded with what Wall Street refers to as a “10-bagger,” a stock that provided a return of 10x the original investment. On a percentage basis, those who held Apple stock over the past 10 years earned a 916% return.

Is Microsoft a safe stock to buy?

Microsoft's analyst rating consensus is a Strong Buy. This is based on the ratings of 35 Wall Streets Analysts.

How much will Microsoft stock be worth in 10 years?

According to Various Analysts, Microsoft Stock the Price Per Share at $420 by the End of 2024, $480 in 2025, $530 in 2026, $530 — $580 in 2027, $580 — $630 in 2028, $680 in 2029, $730 in 2030, $3,000 or Even $5,000 in 2035, $10,000 in 2040, $50,000 or Even $100,000 in 2050, $50k to $100k+ in 2060, According to ...

Is Microsoft a good buy in 2024?

Microsoft stock's sound track record, combined with its leadership in generative AI and cloud computing, makes it a compelling investment opportunity in 2024. The company offers a unique blend of growth and stability, fueled by its extremely large moat and constant innovation.

Why is Apple's dividend so low?

Apple's payout ratio of just 16% is extremely low. This is likely because the company has preferred to spend far more of its capital-return program on stock buybacks. Though Microsoft also buys back its stock, the company has recently been opting to spend more on its dividend than on repurchases.

Who won the Apple vs. Microsoft lawsuit?

Apple lost all claims in the Microsoft suit except for the ruling that the trash can icon and folder icons from Hewlett-Packard's NewWave windows application were infringing.

Who pays highest monthly dividends?

What stock is better than Apple?

Additionally, Amazon's diverse business model has seen it gain a powerful position in tech, with a leading 31% market share in the $626 billion cloud market. This chart shows Amazon's stock significantly outperforming Apple's over the last year.

Why is everyone buying Microsoft stock?

Significant cash reserves have helped Microsoft successfully venture into cloud computing, video games, artificial intelligence (AI), consumer products, and more. The company is active in a diverse range of high-growth markets, making it one of the most attractive investment options right now.

Is Microsoft stock expected to rise?

Stock Price Forecast

The 36 analysts with 12-month price forecasts for Microsoft stock have an average target of 461.5, with a low estimate of 370 and a high estimate of 600. The average target predicts an increase of 13.58% from the current stock price of 406.32.

What is the most profitable stock in 5 years?

How much will Apple stock be worth in 10 years?

Apple long term stock forecast is anticipated to be $315 in 2025, $370 in 2026, $425 in 2027, $465 in 2028, and $480 in 2029. In 2030, analysts anticipate Apple shares will be worth $510.

What is Apple's prediction for 2024?

After Apple's recent earnings report, 43 analysts projected the company's 2024 revenue to come in at $388.3 billion, similar to the previous 12 months. Predicted earnings per share stood at $6.55, also consistent with last year's results.

How much will Microsoft stock be worth in 5 years?

Is Apple a buy right now?

Apple has a conensus rating of Moderate Buy which is based on 17 buy ratings, 12 hold ratings and 2 sell ratings. The average price target for Apple is $200.71. This is based on 31 Wall Streets Analysts 12-month price targets, issued in the past 3 months.

Is Microsoft smart to invest in?

Key Points. Microsoft's growth is accelerating thanks to the company's initiative of integrating AI across multiple products. An acceleration in Microsoft's growth, multibillion-dollar revenue opportunities, and the company's valuation indicate that its stock market rally is sustainable.