Apple (NASDAQ: AAPL) and Fitbit (NYSE:FIT) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.
This is a summary of recent ratings and target prices for Apple and Fitbit, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Apple currently has a consensus target price of $203.89, indicating a potential upside of 25.13%. Fitbit has a consensus target price of $6.77, indicating a potential upside of 29.00%. Given Fitbit’s higher probable upside, analysts clearly believe Fitbit is more favorable than Apple.
Earnings & Valuation
This table compares Apple and Fitbit’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Apple||$229.23 billion||3.61||$48.35 billion||$9.21||17.69|
|Fitbit||$1.62 billion||0.68||-$277.19 million||($0.65)||-8.08|
Apple has higher revenue and earnings than Fitbit. Fitbit is trading at a lower price-to-earnings ratio than Apple, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
61.3% of Apple shares are owned by institutional investors. Comparatively, 61.6% of Fitbit shares are owned by institutional investors. 0.1% of Apple shares are owned by insiders. Comparatively, 29.1% of Fitbit shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Risk & Volatility
Apple has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500. Comparatively, Fitbit has a beta of 1.92, meaning that its share price is 92% more volatile than the S&P 500.
Apple pays an annual dividend of $2.52 per share and has a dividend yield of 1.5%. Fitbit does not pay a dividend. Apple pays out 27.4% of its earnings in the form of a dividend. Apple has increased its dividend for 5 consecutive years.
This table compares Apple and Fitbit’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Apple beats Fitbit on 12 of the 17 factors compared between the two stocks.
Apple Inc. (Apple) designs, manufactures and markets mobile communication and media devices, personal computers, and portable digital music players, and a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications. The Company’s products and services include iPhone, iPad, Mac, iPod, Apple TV, a portfolio of consumer and professional software applications, the iOS and OS X operating systems, iCloud, and a variety of accessory, service and support offerings. The Company also delivers digital content and applications through the iTunes Store, App StoreSM, iBookstoreSM, and Mac App Store. The Company distributes its products worldwide through its retail stores, online stores, and direct sales force, as well as through third-party cellular network carriers, wholesalers, retailers, and value-added resellers. In February 2012, the Company acquired app-search engine Chomp.
Fitbit, Inc., a technology company, provides health solutions in the United States and internationally. The company offers a line of devices, including Fitbit Surge, Fitbit Blaze, Fitbit Charge 2, Alta HR, Alta, Fitbit Flex 2, Fitbit One, and Fitbit Zip activity trackers; Fitbit Ionic smartwatches; Fitbit Aria 2 Wi-Fi smart scales; and a range of accessories, such as bands and frames for its devices, as well as Fitbit Flyer, a wireless headphone designed for fitness. It also offers Fitbit online dashboard and mobile apps that sync automatically with and display real-time data from its wearable devices; and Fitbit Coach that offers exercise programs through personal trainer and yoga apps. The company sells its products through consumer electronics and specialty, e-commerce, mass merchant, department store, club, and sporting goods and outdoors retailers; wireless carriers; distributors; and Fitbit.com, an online store, as well as directly to consumers. The company was formerly known as Healthy Metrics Research, Inc. and changed its name to Fitbit, Inc. in October 2007. Fitbit, Inc. was founded in 2007 and is headquartered in San Francisco, California.
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