Reviewing Apple (NASDAQ:AAPL) and Sandisk (NASDAQ:SNDK)

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

Valuation and Earnings

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	$20.25 billion	9.31	$11.43 billion	$72.90	17.90
Apple	$416.16 billion	12.17	$112.01 billion	$8.72	39.81

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 & Insider Ownership

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Sandisk and Apple, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sandisk	0	4	21	3	2.96
Apple	2	15	25	1	2.58

Sandisk presently has a consensus price target of $2,093.73, indicating a potential upside of 60.46%. Apple has a consensus price target of $340.12, indicating a potential downside of 2.01%. Given Sandisk’s stronger consensus rating and higher possible upside, analysts plainly believe Sandisk is more favorable than Apple.

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%

Volatility & 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.

Summary

Sandisk beats Apple on 8 of the 15 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.