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Good day subscribers thank you so much for joining me today i am jeremy this is a financial education channel in today we’re doing episode two of stock market battle where i battle two stocks against each other that are in a very similar industry so today we’re taking apple and we’re battling against google and we’re gonna see who is the winner i’m taking seven
Different categories to compare these two on and we’ll see which one gets the most points out of those seven categories the seven categories that i judge the highest as far as investments in the technology sector now before i get into this guy’s please leave me a thumbs up if you enjoy this new series and also leave me a comment on what to stocks you would love to
See me battle on next week’s video because this is a brand new weekly series i’ll be doing every single week let’s go ahead and get into this guys so the number one category we are talking about here is the p/e ratio what p/e ratio do these companies have by the way apple is a huge company 620 billion dollar market cap google’s a huge company 560 billion dollar
Market cap i just want to let you guys know that so you have reference to how huge these companies are it’s absolutely ridiculous so apples p/e ratio is 14 that’s very low in today’s market cuz today’s market most companies are trading out a twenty plus pe ratio so apples got a very low p/e here guys 14 google has a p/e of 29 so much much much higher than apple
Currently so obviously apple wins this category they’re up one to zero right now versus google we’ll see how things start turning out here but man that’s a huge difference and p/e ratios google’s p/e ratio is almost double what apple’s is that’s a huge huge difference there number two category we are looking at here is is revenue apples revenue debt and this is
For the last quarter we’re looking at last quarter right now the one they just reported a month or two ago apple’s revenue down nine percent nine percent down revenue right now for apple versus google which was up twenty percent twenty percent of revenue for google is absolutely phenomenal so you’re looking at two companies that are in very different places right
Now in the in the currently you know last quarter apples revenue down nine percent that’s that’s quite a bit to be down in revenue especially when you’re a big company like apple and then you look at google up twenty percent that is freaking phenomenal so two companies that are in two very different places right now so right now we’re apple one google one so one
Two one right now all tied up guys going into category three here which is looking at the net income for the most recent quarter net income for apple down 23% absolutely huge huge number here guys down to be down 23% net income your latest quarter that’s a very very bad sign that’s just a horrible number no other way to sugarcoat it google however grew net income
26% in the latest quarter twenty six percent growth in net income for google and latest quarter that is absolutely amazing so this this category is the most dramatic of any category we’re going to look at here guys when you look at apple down 23% with net income in the latest quarter and you look at google up 26% in the latest quarter net income that is just
Like mind-blowing so but you only get one point per category so apple stores one point google now has two points google takes the lead category number four here guys we’re looking at this is actually net income for last year so we’re not just looking at the most recent quarter we’re actually looking at what how did things go over the last year here so apples net
Income last year was down 16% so just not a good last year for apple and obviously it’s gotten even worse this latest quarter google however was up 12% so google wins this category so now we have one point for apple three points for google google looks like it’s running away with it as of right now and obviously something i want to point out here is google net
Income was up 12% last year but in the latest quarter it was up 26% so things for for google are actually getting better it seems at least if you’re just judging off the facts you just everything off the quarter where as apple things are actually getting worse and this is once again if you’re not speculating you’re judging it off of what happened recently things
Are actually getting worse for apple because net income was down 16 percent last year versus being down 23 percent the previous year so things are things are excuse me the latest quarter down 23% in ladies quarters for things that are actually getting worse for apple so those are some things taking account but regardless we got one point for apple three points for
Google category number five here guys this is looking at the balance sheet now this is mind-blowing apple has 150 billion more dollars in cash and investments than in dent unbelievable unbelievable google has 60 billion dollars more in cash in investments in debt that’s phenomenal as well but google just got smashed on by apple in this category absolutely amazing
Apple has that much more money in cash and investments in debt so clearly apple wins this category so apple has two points now to three points for google’s so apples on the comeback here guys category number six this category i add it because a lot of you guys love dividends a lot of you guys you know judge dividend so heavily and you pay attention dividends and
If a company pays dividends and those kinds of things so i add this category and apple pays a dividend yield of about 2% which is pretty dang good i think their actual payout ratio is two dollars and 28 cents for every share you own so if you own 10 shares of apple you’re going to get 22 dollars and some change or 23 dollars and some change in basically money paid
Out to you every year in dividends google you get no dividends they do not pay out a dividend currently so that makes three points for apple three points for google all tied up going into the last category number seven here guys so we’re looking at forward p/e ratio apple has a forward p/e ratio of 11 so super low which is a good sign because they’re expected to
Get more profitable next year than versus what their last year was so that’s a really good sign for apple they need to get back on the right track google has a p/e of 19 so that’s really that’s a phenomenal when you consider there oh p/e ratio was 29 to go from a 29 to a 19 very good sign but they still got smashed on by apple in this category so we have apple
With four google with three apple wins the series overall guys and once again this is just looking at past statistics and those kinds of things now how you judge the companies in the future that’s that’s up to you guys that’s not what this series about it’s just about looking at past performance but you gotta you got to ask yourself you know can apple get back to
Growth can apple start to grown an income again grow revenues again can they get the iphone back on track where the iphones backed into growth the iphone is what’s killed apple you know the iphone growth has stopped in apple’s just gotten killed from that despite services being up and a lot of other categories being up iphone being down apple’s an iphone company
Google however is just a growth beast overall they’re grown google business so you’re on youtube business they’re growing everything they’re just a growth the beast right now and you got to ask yourself if you’re going into google can google keep this type of growth up or keep something close to this type of growth up if they can then this might be a stock that
Could be a trillion dollar market cap in no time guys because they’re already at 550 billion they can keep this type of growth up you can see that trillion dollar market caps gonna be around the corner and a few years from now guys so i hope you enjoyed this series today don’t forget to leave me whatever stocks you love to see me break down next week’s video that
Go against each other if you came across this video and not subscribed yet you may want it we talked to stock market the most on this channel including this series every single week we talk business and entrepreneurship i’m an entrepreneur and give a lot of my entrepreneur type tips away and then also we talk personal finance and personal finance tips on this
Channel that’s what this channel is about thank you for watching guys and have a great day
Transcribed from video
Apple vs Google! – Stock Market Battle! By Financial Education
