Hewlett-Packard Company (NYSE:HPQ) vs. Apple Inc. (NASDAQ:AAPL) is a no-brainer for any investor looking for a stock that is well valued, well managed and with a huge potential on the upside in terms of returns. Apple is up 12% on a year to date while Hewlett Packard continues to struggle with its shares down by 20%. CNBC’s contributor, Steve Grasso, notes that Hewlett-Packard has yet to gain the confidence of investors heading into the much-publicized split off as Apple continues to do extremely well on a strong product cycle.
Apple Inc. (NASDAQ:AAPL) remains a much talked about success story in the industry having become the largest company in the world in terms of market cap at the back of a strong cycle of exciting products. Hewlett-Packard Company (NYSE:HPQ) on the other hands is the opposite having struggled to find its way in the market especially on posting dismal first quarter earnings.
“I think Apple Inc. (NASDAQ:AAPL) is cheap for the right reasons, I think Hewlett-Packard Company (NYSE:HPQ) is cheap for the wrong reason and I think you have to stick with what is working. [..] We have the capital return, we have the watch coming, I don’t think that is going to be very exciting and then we have earnings in late April,” said Mr. Dan Nathan.
Apple Inc. (NASDAQ:AAPL) remains a stock worth owning rather than trading as it has everything working for it. Right from a strong iPhone cycle in terms of demand, to the much awaited Apple Watch, Compared to Hewlett-Packard Company (NYSE:HPQ), which despite being cheap continues to struggle especially on the strengthening of the dollar. Dan Nathan expects Apple to move by $10-15 on either side depending on the kind of reception Apple Watch will receive on hitting the stores.
Apple Inc. (NASDAQ:AAPL) remains a superior franchise when compared to HP notes Karen Finerman at the back of a reasonable valuation as well as a balance sheet that remains unmatched in the industry. The analyst also believes Apple is doing a lot to address investor’s interests in terms of share price.
“Tim Cook does seem to be much more focused on share price which is something Steve Jobs never really seemed to care about at all and we have seen that through capital allocation that he had done over the last year and so to me no brainer, Apple,” said Mrs. Finerman.
Better products better management and better metrics makes Apple Inc. (NASDAQ:AAPL) a must own stock when compared to Hewlett-Packard Company (NYSE:HPQ) according to Guy Adami.
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