Analyzing QLogic (QLGC) & Apple (AAPL)
QLogic (NASDAQ: QLGC) and Apple (NASDAQ:AAPL) are both technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, institutional ownership, earnings, valuation, risk and analyst recommendations.
This is a summary of recent ratings for QLogic and Apple, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Apple has a consensus price target of $190.31, indicating a potential upside of 19.03%. Given Apple’s higher probable upside, analysts clearly believe Apple is more favorable than QLogic.
Risk & Volatility
QLogic has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500. Comparatively, Apple has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500.
Earnings & Valuation
This table compares QLogic and Apple’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Apple||$223.51 billion||3.69||$70.21 billion||$8.80||18.17|
Apple has higher revenue and earnings than QLogic. Apple is trading at a lower price-to-earnings ratio than QLogic, indicating that it is currently the more affordable of the two stocks.
Apple pays an annual dividend of $2.52 per share and has a dividend yield of 1.6%. QLogic does not pay a dividend. Apple pays out 28.6% of its earnings in the form of a dividend. QLogic has raised its dividend for 4 consecutive years.
This table compares QLogic and Apple’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
60.5% of Apple shares are held by institutional investors. 0.1% of Apple shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Apple beats QLogic on 11 of the 13 factors compared between the two stocks.
QLogic Corporation (QLogic), designs and supplies server and storage networking connectivity products that provide and manage computer data communication. The Company’s products facilitate the transfer of data and enable resource sharing between servers, networks and storage. Its products are used in enterprise, managed service provider, consumer Web, and cloud service provider data centers. Its products are based primarily on Fiber Channel and Ethernet technologies and are used in connection with storage networks, data networks and converged networks. Storage networks are used to provide access to storage across enterprise environments. Fibre Channel is a technology for enterprise storage networking. Data networks are used to provide workstation-to-server, server-to-server, and server-to-storage connectivity using Ethernet. Converged networks are designed to address the data center by consolidating and unifying storage and data networks, using high-speed Ethernet.
Apple Inc. (Apple) designs, manufactures and markets mobile communication and media devices, personal computers, and portable digital music players, and a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications. The Company’s products and services include iPhone, iPad, Mac, iPod, Apple TV, a portfolio of consumer and professional software applications, the iOS and OS X operating systems, iCloud, and a variety of accessory, service and support offerings. The Company also delivers digital content and applications through the iTunes Store, App StoreSM, iBookstoreSM, and Mac App Store. The Company distributes its products worldwide through its retail stores, online stores, and direct sales force, as well as through third-party cellular network carriers, wholesalers, retailers, and value-added resellers. In February 2012, the Company acquired app-search engine Chomp.
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