Apple (NASDAQ: AAPL) and Electronics for Imaging (NASDAQ:EFII) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, risk, valuation and profitability.

Profitability

This table compares Apple and Electronics for Imaging’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Apple 21.09% 36.29% 13.95%
Electronics for Imaging 3.09% 3.67% 2.01%

Insider and Institutional Ownership

59.4% of Apple shares are held by institutional investors. 0.1% of Apple shares are held by insiders. Comparatively, 1.9% of Electronics for Imaging shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility and Risk

Apple has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500. Comparatively, Electronics for Imaging has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Apple and Electronics for Imaging, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Apple 0 6 41 0 2.87
Electronics for Imaging 1 5 7 0 2.46

Apple presently has a consensus target price of $201.52, indicating a potential upside of 17.82%. Electronics for Imaging has a consensus target price of $44.22, indicating a potential upside of 49.35%. Given Electronics for Imaging’s higher probable upside, analysts plainly believe Electronics for Imaging is more favorable than Apple.

Earnings & Valuation

This table compares Apple and Electronics for Imaging’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Apple $229.23 billion 3.83 $48.35 billion $9.20 18.59
Electronics for Imaging $992.07 million 1.36 $45.54 million $0.66 44.86

Apple has higher revenue and earnings than Electronics for Imaging. Apple is trading at a lower price-to-earnings ratio than Electronics for Imaging, indicating that it is currently the more affordable of the two stocks.

Dividends

Apple pays an annual dividend of $2.52 per share and has a dividend yield of 1.5%. Electronics for Imaging does not pay a dividend. Apple pays out 27.4% of its earnings in the form of a dividend. Apple has raised its dividend for 4 consecutive years.

Summary

Apple beats Electronics for Imaging on 12 of the 17 factors compared between the two stocks.

About Apple

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.

About Electronics for Imaging

Electronics For Imaging, Inc. is engaged in digital printing, focused on the transformation of the printing, packaging, ceramic tile decoration, and textile industries from the use of traditional analog-based printing to digital on-demand printing. It operates through three segments. The Industrial Inkjet segment consists of its VUTEk and Matan super-wide and wide format display graphics, Reggiani textile, Jetrion label and packaging and Cretaprint ceramic tile decoration and construction material industrial digital inkjet printers; ceramic, water-based, and thermoforming ink, and digital inkjet printer parts, and professional services. The Productivity Software segment consists of a software suite that enables automated end-to-end business and production workflows for the print and packaging industry. The Fiery segment consists of digital front ends that transform digital copiers and printers into networked printing devices for the office, industrial and commercial printing markets.

Receive News & Ratings for Apple Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Apple Inc. and related companies with MarketBeat.com's FREE daily email newsletter.