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Monday, March 11, 2013

Sell Google, buy Apple? $AAPL $GOOG

Sell Google, buy Apple? $AAPL $GOOG

  • From a P/E perspective, GOOG is the 10th most expensive in the S&P 100 at 24.6x
  • At 3.8x P/Book, it's the 31st most expensive
  • With a PEG ratio of 1.20, it's trading at a premium of its growth rate, whereas Apple's PEG ratio is just 0.55x (the 5th lowest in the entire S&P 500)
  • Over the past 5 years, GOOG has been compounding retained earnings at only 6.74%, whereas Apple has been nearly double that at 11.88%
  • GOOG's return on Assets has been declining at -6.47%/yr compounded rate, whereas Apple has been increasing by 11.7%/yr
  • For the record, by Dec. 5 last year Balter had changed his "hold" on Apple to a "buy" and then a "strong buy." The stock, however, continued to fall, from $570 to below $420.

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