Two for Tuesday MSFT vs AAPL

This weeks two stocks I would like to look deeper into are MSFT and AAPL.

Full disclaimer: We have owned shares in both companies since 2020.

While it is lacking, revenue growth for MSFT is slightly better than it is for AAPL over the last 3 years.

The operating margin for MSFT is about 10% better than it is for AAPL, leading us to believe that MSFT might be slightly more efficient in extracting profit.

AAPL certainly beats MSFT in Free Cash Flow by a large lead.

Both companies can adequately pay off their debt, although MSFT has half the amount of debt compared to AAPL.

A 10k investment into both companies over the last 3 years would have yielded:

• MSFT 60%

• AAPL 116%

As I mentioned, we own both companies and will continue to hold them as long as the market does not fall back into a volatile bearish trend (red bars) and breaks support zones.

Weekly S&P 500 chart below.

While AAPL has provided more growth, my preference for the long-term hold is probably slightly more with Microsoft based on growth potential and the risk of holding this stock in our own portfolio based on our holdings.
However, a fresh new line-up of products from Apple could change that and our portfolio weightings.

Anne

Let’s go trade!