Two giants in the Internet and consumer electronics retail space battling it out for supremacy. Which company do you support ? Now if you support one of these companies by buying their retail products, does that mean you might consider investing with them? Both companies are doing great things in terms of technology and pushing the consumer to try on new gadgets they normally would not even consider buying in their everyday life.
Just 4 years ago nobody had a tablet, now all I see are a bunch of zombies typing away at an IPAD or Kindle Fire or an Android powered Tablet on the streets. Even little kids are being held captive by launching into their hands by their parents a $599 Ipad / IPhone so they can play their favorite app games. What a bright future we have when I walk into my local pizza eatery and I see a cute couple typing and finger pointing at their devices instead of having a genuinely rich soul fulfilling conversation. Instead, that great couple became a travesty in today’s society by being in the present and not really being there. You can thank all the smart phone companies and the cell phone companies for turning us into fanatic (checking status updates) individuals every 3 minutes to make sure you do not miss a single picture or comment. Can you say media overload three times?
Let’s get back to the matter at hand Apple Vs. Google. Who is better? Who has better opportunities to grow the stock and finally reach the $1000 per share price?
Current Price for each Stock is:
Aapl- $606 per Share
Goog- $576 per Share*
1 Year Target Est:
Aapl- $723
Goog- $733*
Price to Earnings (How cheap the current stock price is compared to it’s earnings):
Aapl: 14.80*
Goog: 17.58
So there you have it one company dominates the the Internet search arena and the other has a steady growth rate in the consumer electronics market place. One of them owns the android cell phone operating system and the other has the mac operating system with the most popular cell phone in the world, the IPhone. I think one day their will be an (I) in front of every word and Apple will own thousands of new more sophisticated products. See below for a small breakdown of each companies competitive advantage in a each others target market space.
Apple Owns: Google Owns:
IPhone/Ipad Android/YouTube/Google +
Itunes Streaming Industry Blogger Industry / Adsense
Mac TV / Computers Worlds #1 Search Engine Site / Google Earth
Retail Mega-Stores / Great Culture Nexus 7 Tablet / Motorola / G Series Cellphones
In my opinion I tend to favor the company that offers a dividend (Apple) as a potential company to invest in as a general rule of thumb. But Google has so much more to offer and in a wider audience than Apple does. Just with YouTube alone, I think Google will be the #1 company in the world in the next 5 years in terms of brand loyalty. On the other hand I think Apple will reach the 1,000 dollar price faster than Google, so for market capitalization only apple will hold the #1 position for the time being. One thing I noticed before thinking of who will be the world’s best company is an important fact to consider, that Google has a lot more competitors as compared to Apple. Which is not very good for business.
I am taking your bets as who you think is the better company by the comments below.
RichUncle EL