“Amazon (AMZN) and Apple (AAPL) recently reported numbers that not only beat, but far exceeded the expectations of all but the biggest bulls,” Robert Weinstein writes for The Street.
“Both companies reported higher top and bottom lines, and both trade for over $200 per share. There are many other similarities, for example, both sell digital content and the hardware to consume digital content. Both sell third-party content as well. Both companies have a worldwide marketing footprint and are household names,” Weinstein writes. “Amazon and Apple have the resources available to dominate most spaces they wish to enter.”
Weinstein writes, “However, the similarities end quickly once you lay financial pages next to each other. Apple is more than five times more valuable by market cap than Amazon… Keep in mind that both companies just reported what was received as “strong” earnings, but in the last 12 months Apple produced $41 in earnings per share, while Amazon made $1.37. Apple’s profit was 30 times greater than Amazon. If you bought one share of Apple and your neighbor bought one share of Amazon, you can take your neighbor to lunch and he can’t even take care of the tip.”
Read more in the full article here.