Apple Inc. (AAPL) Draws Closer to Microsoft, but Google Inc (GOOG) Leaves Both in the Dust

The bigger picture
With over 2 billion computing devices being shipped throughout the world each year, it’s become clear that computing devices have become commoditized. As a result, investors have grown unwilling to pay a premium for companies that primarily sell computing devices. It might explain, in part, why Apple Inc. (NASDAQ:AAPL) trades with a single-digit P/E ratio. For sentiments to change, Apple will have to regain the faith of investors by showing them that its brand and devices aren’t just a commodity.

And then there’s Google Inc (NASDAQ:GOOG), which is a more of a “pick and axe” investment that benefits from the mobile computing revolution regardless of which device or ecosystem strikes it rich. Consequently, investors are comfortable with Google trading at 41% premium to the S&P 500.

Based on price alone, I think Mr. Market has already crowned Google king.

Fool contributor Steve Heller owns shares of Apple and Google. The Motley Fool recommends Apple, Gartner, and Google. The Motley Fool owns shares of Apple, Google, and Microsoft.

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