What’s the better stock buy: Apple or beleaguered Dell?

Holiday Apple Blowout IV“In a new Motley Fool series, we pit two stocks against each other on five criteria to determine the better buy,” The Motley Fool reports. “Today’s matchup is Apple (Nasdaq: AAPL) vs. Dell (Nasdaq: DELL). Using five short-of-scientific-but-carefully chosen criteria, let’s determine which is the better buy according to the numbers:”

Round 1: Cheapness: Advantage: Dell
Round 2: Growth: Advantage: Apple
Round 3: Operations: Advantage: Apple
Round 4: Balance sheet: Advantage: Apple
Round 5: CAPS rating: Advantage: Apple

Full article here.

MacDailyNews Take: The last category Apple would ever want to “win” would be “cheapness,” but it’s absolutely perfect for beleaguered Dell.

22 Comments

  1. For a company, MotleyFool, that places such a great emphasis on free cash flow, as they should, they use PE ratios to determine cheapness?!? What? They use Apple’s GAAP PE ratio, when if they used FCF, as they normally do, the number would be far closer to Apple’s non-GAAP ratio.

  2. Actually, Dell might be the better short term stock to buy. Dell is at rock bottom prices and a 10-20% jump in their price is a lot easier than a similar jump in Apple’s price. For Dell to climb 20% they need to make $3 / share. That could easily happen in a day with some half-a$$ed announcement at CES. Apple on the other hand would have to climb $40 to get that same 20% growth.

    That probably makes Dell the better short term buy.

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