This post was last updated on April 21st, 2020 at 10:36 pm
Apple vs Google Stock, Which Tech Giant Should You Buy?
Picking between two of the largest tech stocks in the market is never an easy choice. Today we will be covering Apple vs Google stock, which one you should buy, why you should buy that one, and current statistics on each company. Considering both companies have had record breaking years, up until February, and will likely continue a bull run of sorts when the market stabilizes there are many differences between the two which indicate whether one should buy, sell, or hold. When considering which stock should be bought it is important to take into account their PE ratio, fair value, and short-term, mid-term, and long-term outlooks on the performance of their stock.
Apple vs Google P/E Ratio
Apple stock versus Google stock is very close in terms of PE ratio. Both are much higher than other companies in the industry, however, for companies as big as Apple and Google this is not much of a surprise. Google’s current PE ratio is 26.1, meaning that you will be paying 26.1 times its estimated actual value. Apple’s current PE ratio is 22.45, meaning the exact same thing, you’ll be paying 22.45 times it’s estimated actual value. Now these numbers are indicators that these are big players in the industry. For a smaller company, a PE ratio of 26.1 would be an indication that it is extremely overvalued and it’s time to sell. However, in the case of two of the largest companies in the industry and in the world these numbers are standard. Now does PE ratio tell you which one you should buy? No, but it is typically a good indicator that you may see more return from one then from another. PE ratio does give you a good metric for determining which stock you may want to purchase, though, and that is fair value.
Apple vs Google Fair Value
Apple’s current fair value indicates that it is between fair value and overvalued. We have a recent blog post on why Apple stock is overvalued that you can check out here. Currently, Google stock is undervalued meaning that you are getting a better value for your money when you buy Google. Now, this may seem like a sure thing if Google is going to go up and Apple is going to go up then you want to make sure that the fair value that you are going to be paying is fair value to undervalued rather than fair value to overvalued. There are a lot of things to consider other than this though, and one of them is chart events and possible patterns that could indicate whether a stock is behaving bullishly or bearishly.
There are current chart patterns detected on both Google and Apple that indicate precisely the opposite of each other. Apple stock is currently showing a bullish pattern of head and shoulders bottom. Now this could be an indication that Apple is going to have a short-term bull run over the next two to six weeks. Google, on the other hand, is showing a bearish pattern of a double moving average crossover. This could mean that Google is expected to have a mid-term decline, however if you anticipate on holding Google stock long term then it should not be a concern.
Short Term, Mid Term, Long Term
In terms of which one you should purchase for short term, mid-term, and long term it is difficult to say given our current situation of a global pandemic, however, it does seem as though, holding onto Apple and Google stock short-term, between two weeks and six weeks, and holding onto long-term, AKA nine months to a year, as opposed to mid-term of six weeks to nine months would be in your favor regardless of detected chart patterns. Both are great options if you plan on investing short-term or long-term, however, given Google’s undervalued status we believe that Google is a better buy that will give you a better return than Apple.
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