Apple (AAPL) vs. Quantum Corporation (QTM) Critical Review
Apple (NASDAQ: AAPL) and Quantum Corporation (NYSE:QTM) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, profitability, risk, dividends, institutional ownership and valuation.
Apple pays an annual dividend of $2.52 per share and has a dividend yield of 1.6%. Quantum Corporation does not pay a dividend. Apple pays out 28.6% of its earnings in the form of a dividend. Quantum Corporation has increased its dividend for 4 consecutive years.
This is a breakdown of recent ratings for Apple and Quantum Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Apple presently has a consensus target price of $190.55, indicating a potential upside of 20.09%. Quantum Corporation has a consensus target price of $10.00, indicating a potential upside of 69.20%. Given Quantum Corporation’s stronger consensus rating and higher possible upside, analysts plainly believe Quantum Corporation is more favorable than Apple.
Insider & Institutional Ownership
60.4% of Apple shares are owned by institutional investors. Comparatively, 64.2% of Quantum Corporation shares are owned by institutional investors. 0.1% of Apple shares are owned by company insiders. Comparatively, 8.6% of Quantum Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Apple and Quantum Corporation’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Apple||$223.51 billion||3.67||$70.21 billion||$8.80||18.03|
|Quantum Corporation||$505.92 million||0.40||$19.45 million||$0.07||84.44|
Apple has higher revenue and earnings than Quantum Corporation. Apple is trading at a lower price-to-earnings ratio than Quantum Corporation, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Apple has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500. Comparatively, Quantum Corporation has a beta of 2.39, meaning that its stock price is 139% more volatile than the S&P 500.
This table compares Apple and Quantum Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Apple beats Quantum Corporation on 9 of the 17 factors compared between the two stocks.
Apple Company Profile
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.
Quantum Corporation Company Profile
Quantum Corporation focuses on scale-out storage, archive and data protection, providing solutions for capturing, sharing, managing and preserving digital assets over the entire data lifecycle. The Company’s end-to-end tiered storage solutions enable users to maximize the value of their data by making it accessible whenever and wherever needed, retaining it indefinitely and reducing total cost and complexity. It works with a network of distributors, value-added resellers (VARs), direct marketing resellers (DMRs), original equipment manufacturers (OEMs) and other suppliers to meet customers’ evolving needs. Its scale-out storage portfolio includes StorNext software, appliances and full systems called StorNext Pro Solutions, as well as Xcellis workflow storage, QXS disk storage, Lattus extended online storage and Q-Cloud Archive and Vault services. Its StorNext offerings enable customers to manage large unstructured data sets in an information workflow.
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