Is Apple Inc. (AAPL) Seriously Comparable To BlackBerry or Nokia?

Don’t Underestimate Apple

It isn’t common to see shares of a $400 billion company bouncing around like a hockey puck, but Apple isn’t your everyday firm. The latest data shows that relative to a year ago, the company is selling more iPhones and iPads. Its revenue from iTunes and software is also growing. The company has powerful assets in the form of its well-known brand name and world class software ecosystem. Also, it has no debt and a large amount of cash.

AAPL Gross Profit Margin Quarterly data by YCharts

The above chart shows as revenue growth slowed investors have significantly shrunk Apple Inc. (NASDAQ:AAPL)’s price to earnings growth (PEG) premium. For value investors looking for a long-term investment and a piece of a 2.6% dividend, this should be seen as a blessing. Now the company trades at a price to earnings ratio of around 11 and still has a healthy profit margin of 15.7%.

Conclusion

Nokia and BlackBerry are interesting turnaround plays. BlackBerry is fighting hard to maintain its core competencies as the best option for highly sensitive communications. Nokia is fighting to regain a share of its former glory. Recent surveys in emerging markets show that it has hope. Both of these companies are good plays to watch, but Apple Inc. (NASDAQ:AAPL) offers more secure earnings and a dividend at a reasonable valuation. Compared side by side, Apple Inc. (NASDAQ:AAPL) is a better deal for value investors looking for surety and stability.

Joshua Bondy has no position in any stocks mentioned. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple.