Tuesday, April 19, 2011

Apple vs. Microsoft by the numbers - Wall Street thinks one company is a more compelling buy than the other

Computerworld - A little less than a year ago, Wall Street reached a Microsoft vs. Apple milestone: for the first time, Apple's corporate value surpassed Microsoft's

And Apple's market cap (the total value of all of its shares) topped Microsoft's even though the latter company had more revenue and double the profit margins. Clearly, Wall Street was looking at growth potential, not current income statements and balance sheets, in anointing Apple the more compelling buy.

What has happened since? With Apple due to report its latest quarterly earnings tomorrow -- Microsoft reports its numbers next week -- we look at some recent numbers, as well as data over time.

Market cap

Market cap (in billions $US)
Source: Yahoo Finance

While total values for Microsoft and Apple were close last spring, that's no longer the case. Since May 26, 2010, when Apple first inched ahead of Microsoft, Apple's market capitalization has risen from $223 billion to more than $306 billion (as of April 14). Microsoft's, meanwhile, has slipped from $219 billion to $212 billion.     Read More