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

22 Comments

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.

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Apple now worth sextuple Dell’s market value – October 20, 2009
Apple now worth quintuple Dell’s market value – February 12, 2009
Apple could buy Dell outright; Mac-maker has more cash on hand than Dell is worth – October 21, 2008
Apple now worth quadruple Dell’s market value – May 01, 2008
Apple now worth triple Dell’s market value – December 06, 2007
Apple now worth double Dell’s market value – July 27, 2007
Steve Jobs emails Apple team: Michael Dell not the best prognosticator, Apple worth more than Dell – January 16, 2006
Apple now worth more than Dell – January 13, 2006

22 Comments

  6. 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.

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  10. 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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  16. OK, they could have done a much better job in naming that first category. I think “Affordability” is more accurate, less of a negative than “Cheaper”. And Dell is certainly “Less Expensive” than AAPL. More Affordable. Even if “Not as Good a Buy”. Oh, wait, that’s another meaning for “Cheaper” … “Not as Good a Buy”.
    Look at that CAPS rating, though. That is the value, the esteem, of thousands of active stock-traders. Not the schmucks who buy for Fidelity and the like, those who buy for themselves. They like it, even without its dividend.

    Reply

  21. Wouldn’t it be viciously sweet if Apple bought Dell? And then Apple broke Dell up and distributed Dell’s assets to APPLE stockholders?

    Or just the RUMOR that Apple was going to buy Dell. What would that do to Dell stock? Then Apple deny the rumor. What would THAT do to Dell stock. Yank the chain, tick off the dog.

    Reply

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