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Summary
- While Apple currently has a P/E [FWD] Ratio of 25.54, Alphabet’s is only 20.83.
- My DCF Model shows that both companies are currently undervalued.
- The Seeking Alpha Factor Grades and the HQC Scorecard currently indicate that Alphabet is more attractive than Apple when it comes to Valuation and Growth.
- In this analysis, I will show you which of the two companies is currently more attractive in terms of risk and reward.
Investment Thesis
- I rate both Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) and Apple (NASDAQ:AAPL) as a buy: Both have strong competitive advantages, strong financials and are highly profitable. However, the results of the Seeking Alpha Factor Grades and the HQC Scorecard, both show Alphabet to be more attractive in terms of Valuation and Growth.
- According to the Seeking Alpha Quant Ranking, Alphabet is in a better position than Apple: While Alphabet is ranked 3rd out of 63 in the Interactive Media and Services Industry, Apple is rated 7th out of 31 in the Technology Hardware, Storage and Peripherals Industry. Within the Communication Services Sector, Alphabet is ranked 8th out of 251, while Apple is ranked 134th out of 631 within the Information Technology Sector.
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