Question

Compare Apple vs Microsoft over the last 4 years in finances using any accurate websites in finances (like Yahoo) and then answer the following questions:

Compare the valuation ratios across the two firms. How do you interpret the difference between them?

Consider the enterprise value of both firms for each of the four years. How have the values of both firms changed over the time period?

Conclude…. Which of the companies is better managed? Which one is a better investment? Why?

                 

Answer 1

Apple company is having 225.18$ market capitalisation.

Microsoft company is having 112.8$ market capitalisation.

But Microsoft is a great example of how much difference CEO makes.

under Bill gates, microsoft did spectacularly well untill the dot -com bust.

In short, a big reason Microsofts stock is growing so much is that investors expects big positive surprises because of comapny will demote more of their budgets to microsoft products.

Growth acceleration due to microsofts cloud business.

Smart bets on Artificial intelligence and the internet of things.

But finally if we consider both the companies Apple is better manged than microsoft in all the ways.