Sandisk (NASDAQ:SNDK) vs. Apple (NASDAQ:AAPL) Critical Contrast

Sandisk (NASDAQ:SNDK) and Apple (NASDAQ:AAPL) are both large-cap technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, dividends, risk and institutional ownership.

Dividends

Sandisk pays an annual dividend of $1.20 per share and has a dividend yield of 0.1%. Apple pays an annual dividend of $1.08 per share and has a dividend yield of 0.3%. Sandisk pays out 1.0% of its earnings in the form of a dividend. Apple pays out 12.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Apple has increased its dividend for 14 consecutive years. Apple is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Sandisk and Apple’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sandisk	56.47%	87.84%	66.03%
Apple	27.62%	135.46%	34.11%

Earnings and Valuation

This table compares Sandisk and Apple”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sandisk	$28.97 billion	5.65	$11.43 billion	$124.75	9.07
Apple	$466.82 billion	10.28	$112.01 billion	$8.72	37.70

Apple has higher revenue and earnings than Sandisk. Sandisk is trading at a lower price-to-earnings ratio than Apple, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

67.7% of Apple shares are held by institutional investors. 0.3% of Sandisk shares are held by insiders. Comparatively, 0.1% of Apple shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Sandisk has a beta of 5.23, indicating that its share price is 423% more volatile than the S&P 500. Comparatively, Apple has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Sandisk and Apple, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sandisk	0	5	22	1	2.86
Apple	2	15	24	1	2.57

Sandisk presently has a consensus target price of $2,056.23, indicating a potential upside of 81.66%. Apple has a consensus target price of $342.76, indicating a potential upside of 4.27%. Given Sandisk’s stronger consensus rating and higher possible upside, equities analysts clearly believe Sandisk is more favorable than Apple.

Summary

Apple beats Sandisk on 9 of the 17 factors compared between the two stocks.

About Sandisk

SanDisk Corporation offers flash storage solutions. The Company designs, develops and manufactures data storage solutions in a range of form factors using flash memory, controller, firmware and software technologies. The Company operates through flash memory storage products segment. Its solutions include a range of solid state drives (SSD), embedded products, removable cards, universal serial bus (USB), drives, wireless media drives, digital media players, and wafers and components. It offers SSDs for client computing applications, which encompass desktop computers, notebook computers, tablets and other computing devices. Its embedded products are used for embedded storage for mobile phones, tablets, notebooks and other portable and wearable devices, as well as in automotive and connected home applications. Its removable products include cards, USB flash drives, Wireless Drives and Digital Media Players at a range of storage capacities. It sells memory wafers and memory components.

About Apple

Apple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. The company offers iPhone, a line of smartphones; Mac, a line of personal computers; iPad, a line of multi-purpose tablets; and wearables, home, and accessories comprising AirPods, Apple TV, Apple Watch, Beats products, and HomePod. It also provides AppleCare support and cloud services; and operates various platforms, including the App Store that allow customers to discover and download applications and digital content, such as books, music, video, games, and podcasts. In addition, the company offers various services, such as Apple Arcade, a game subscription service; Apple Fitness+, a personalized fitness service; Apple Music, which offers users a curated listening experience with on-demand radio stations; Apple News+, a subscription news and magazine service; Apple TV+, which offers exclusive original content; Apple Card, a co-branded credit card; and Apple Pay, a cashless payment service, as well as licenses its intellectual property. The company serves consumers, and small and mid-sized businesses; and the education, enterprise, and government markets. It distributes third-party applications for its products through the App Store. The company also sells its products through its retail and online stores, and direct sales force; and third-party cellular network carriers, wholesalers, retailers, and resellers. Apple Inc. was founded in 1976 and is headquartered in Cupertino, California.