Google Inc (GOOG): Why Apple Inc. (AAPL)’s Better

7. Stock performance – Google has heavily outperformed Apple in the last year, which makes Apple more attractive. Google has given a return of ~25% compared to the ~33% loss given by Apple Inc. (NASDAQ:AAPL). On the other hand, Apple has heavily outperformed Google Inc (NASDAQ:GOOG) over a longer timeframe. In the last 10 years, Apple has given an astounding ~6000% return compared to the ~622% return given by Google.

8. Balance Sheet – Apple has a stronger balance sheet and larger free cash flows, though to be fair both companies have a rock solid balance sheet with huge amounts of cash. They are also generating massive amounts of cash flow each quarter. Google has ~$42.5 billion in net cash on its balance sheet, while Apple has the biggest cash chest in the corporate world with more than ~$140 billion in net cash. Apple Inc. (NASDAQ:AAPL) generated $40 billion in FCF in 2012, while Google Inc (NASDAQ:GOOG) managed $13 billion in FCF. Both the companies are amassing massive amounts of cash each quarter.

Summary

Both Google and Apple are terrific companies and have performed extremely well over the last decade. The breadth and depth of their offerings make them each a formidable force in the world today, with almost everyone using a product or service made by these companies. At the current stock price, I like Apple Inc. (NASDAQ:AAPL) more than Google. However, I would not sell Google Inc (NASDAQ:GOOG), as I think it is an excellent company run by a very competent management team that is not afraid to take huge risks.

The article Why Apple Is a Better Buy than Google originally appeared on Fool.com and is written by Sneha Shah.

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