Apple Inc. (AAPL): Compared to These Cash Cows, It’s a Bargain

Morningstar analyst Michael Keara thinks pressure from these two companies will force Wal-Mart’s operating margins lower in the long haul.

WMT Dividend Yield data by YCharts.

Apple is almost neck-and-neck with Wal-Mart as measured by dividend yield. Once again, however, in terms of free cash flow yields, Apple is far cheaper. (Apple’s free cash flow yield is more than double Wal-Mart’s.)

I realize these two companies are not tech stocks, but they are cash cows — like Apple. But let’s run one last comparison within the tech sector. How does Apple measure up with Microsoft Corporation (NASDAQ:MSFT) and Intel Corporation (NASDAQ:INTC), two blue-chip stocks that are arguably in declining industries?

AAPL Dividend Yield data by YCharts.

Apple Inc. (NASDAQ:AAPL) is more expensive when measured by dividend yield, but it’s neck-and-neck with Microsoft in terms of free cash flow yield, and much cheaper than Intel. Keep in mind that if Apple decides to boost its dividend significantly, as many analysts predict, Apple could become cheaper by that measure as well.

Also, Samsung may be tough competition, but analysts still project Apple to grow earnings over the next five years by 20% annually. The company scores exceptionally high on its Motley Fool CAPS page, with the majority of All-Star players ranking it outperform, and 60 of 60 Wall Street analysts ranking it a buy.

Can you find a cheaper cash cow?
I’m interested to know if you can find a cheaper blue chip cash cow? If you have one in mind, please state your case in the comments below.

The article Compared to These Cash Cows, Apple Is a Bargain originally appeared on Fool.com.

Fool contributor Daniel Sparks has no position in any stocks mentioned. The Motley Fool recommends Amazon.com, Apple, Costco Wholesale, Intel, and McDonald’s. The Motley Fool owns shares of Amazon.com, Apple, Costco Wholesale, Intel, McDonald’s, and Microsoft.

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