Apple Inc. (AAPL)vs Coinbase Global, Inc. (COIN)

Quick verdict

Apple (AAPL) and Coinbase (COIN) sit in different corners of the market despite both trading on NASDAQ. Apple, valued at approximately £4.89tn market cap, trades on a trailing P/E of 40.2x and a forward P/E of 26.84x, supported by a net margin of 27.15% and ROE of 146.69%. Coinbase, valued at roughly £42.28bn, trades on a trailing P/E of 49.08x and forward P/E of 36.74x, with a much lower net margin of 13.78% and ROE of 5.68%. Apple's beta of 1.097 signals broadly market-like volatility, whereas Coinbase's beta of 3.351 reflects considerably higher price swings, consistent with its 52-week range of £164.01-£530.42 versus Apple's £145.01-£222.23. On the supplied verdicts, Apple scores an overall 5 versus Coinbase's 1, with Apple rated 'A' across valuation, growth, quality, and income, and tagged 'high-quality', while Coinbase is tagged 'high-volatility'.

2-year relative performance

At-a-glance comparison

Business model and revenue mix

Apple designs, manufactures and sells consumer electronics and related services globally, operating within the Technology sector under the Consumer Electronics industry classification. Its scale is reflected in a market cap of approximately £4.89tn and average daily volume of 54.38m shares. Coinbase operates within Financial Services, specifically the Financial - Data & Stock Exchanges industry, providing infrastructure for the cryptoeconomy across the US and international markets. Its market cap of roughly £42.28bn and average volume of 9.06m shares are considerably smaller than Apple's. The two companies serve fundamentally different end markets: Apple's business rests on hardware and services sold to a broad global consumer base, whereas Coinbase's revenue is tied to trading activity and infrastructure within digital asset markets, a structurally more cyclical and volatility-linked segment as evidenced by its beta of 3.351 versus Apple's 1.097.

Valuation

On trailing earnings, Apple trades at 40.2x versus Coinbase's 49.08x, while on forward earnings Apple is cheaper at 26.84x against Coinbase's 36.74x. Price-to-sales tells a different story: Apple's 10.84x is notably higher than Coinbase's 7.28x, though Apple's price-to-book of 46.04x dwarfs Coinbase's 3.15x. On EV/EBITDA, Apple stands at 30.83x versus Coinbase's 31.64x, broadly comparable. Apple's PEG ratio of 1.39 suggests its valuation is reasonably aligned with growth expectations, whereas Coinbase's PEG of -1.12 reflects negative earnings growth inputs, complicating like-for-like comparison. Apple's free cash flow yield of 3.57% is nearly double Coinbase's 1.96%. The supplied verdicts rate valuation as 'A' for Apple, and Apple is also named 'bestFor' value in the accompanying dataset.

Growth profile

Apple's revenue CAGR stands at 6.43% over three years and 29.32% over five years, with EPS CAGR of 22.59% (3y) and 39.1% (5y). Coinbase shows a 3-year revenue CAGR of 9.4% and 5-year figure of 20.07%, both trailing Apple's five-year pace but ahead on the three-year revenue comparison. However, Coinbase's EPS CAGR of -53.45% over three years contrasts sharply with its 38.73% five-year figure, indicating substantial volatility in earnings trajectory. Apple's EPS growth has been more consistent across both windows. The verdicts assign an 'A' growth rating and name Apple as 'bestFor' growth, consistent with its steadier CAGR profile across both revenue and earnings metrics relative to Coinbase's more erratic pattern.

Profitability and quality

Apple's profitability metrics are substantially stronger: gross margin of 47.86% versus Coinbase's 75.94% (Coinbase leads here), but operating margin of 32.64% versus just 0.43% for Coinbase, and net margin of 27.15% versus 13.78%. Apple's ROE of 146.69% and ROIC of 49.57% far exceed Coinbase's ROE of 5.68% and ROIC of 0.1%. Despite Coinbase's higher gross margin, its thin operating margin suggests elevated operating costs relative to revenue. The overall quality verdict rates Apple 'A' and names it 'bestFor' quality, consistent with its markedly higher operating margin, net margin, ROE and ROIC figures compared to Coinbase across every profitability measure supplied.

Balance-sheet risk

Apple holds £67.92bn in cash against £76.23bn total debt, with net debt/EBITDA of -1.5x and a current ratio of 1.07, alongside interest coverage of 3.19x. Coinbase holds £70.19bn cash against £117.39bn total debt, with net debt/EBITDA of -0.28x, a higher current ratio of 2.14, and stronger interest coverage of 28.4x. Both carry a 'B' balance sheet verdict. While Coinbase shows better liquidity (current ratio) and interest coverage, its larger absolute debt load versus Apple's is notable in absolute terms. Apple's dividend yield of 0.32% and payout ratio of 12.69% compare with Coinbase's zero dividend yield and payout ratio of 19.96%, alongside Apple's positive buyback yield of 2.3% versus Coinbase's -0.74%.

Price performance and shareholder returns

Apple's year-to-date return stands at 58.09% and one-year return at 73.53%, with a three-year annualised return of 27.16%, though its five-year annualised return is slightly negative at -0.6%. Coinbase's YTD return is -26.37%, one-year return 6.34%, three-year annualised 28.41% (marginally ahead of Apple), and five-year annualised -4.64%. Apple's maximum five-year drawdown of -19.47% is considerably shallower than Coinbase's -50.24%, illustrating differing volatility profiles consistent with the beta figures of 1.097 and 3.351 respectively. The momentum verdict rates Apple 'A', aligning with its stronger recent one-year and YTD figures relative to Coinbase's negative YTD performance.

Which stock fits which investor

Based purely on the supplied verdicts and metrics, Apple carries an overall score of 5 and is tagged 'high-quality', with 'A' ratings across valuation, growth, quality, income and momentum, and is named 'bestFor' value, growth, income and quality. Coinbase carries an overall score of 1 and is tagged 'high-volatility', with a beta of 3.351 and maximum five-year drawdown of -50.24%, indicating a materially different risk profile from Apple's beta of 1.097 and drawdown of -19.47%. Investors weighing profitability consistency, dividend income (Apple's 0.32% yield with 12.69% payout ratio), and steadier historical returns may find Apple's supplied metrics more aligned with those priorities, while those specifically seeking exposure to the cryptoeconomy infrastructure segment, as reflected in Coinbase's business description, may weigh its higher gross margin (75.94%) and interest coverage (28.4x) against its negative ROIC (0.1%) and recent YTD decline (-26.37%).

• Value: AAPL
• Growth: AAPL
• Income: AAPL
• Quality: AAPL

Frequently asked questions

Which company has the higher market capitalisation?

Apple has a substantially larger market capitalisation at approximately £4.89tn compared with Coinbase's approximately £42.28bn.

How do the valuation multiples compare?

Apple trades on a forward P/E of 26.84x versus Coinbase's 36.74x, though Apple's price-to-book of 46.04x is much higher than Coinbase's 3.15x, and Apple's price-to-sales of 10.84x exceeds Coinbase's 7.28x.

Which stock has shown greater price volatility?

Coinbase has shown greater volatility, with a beta of 3.351 versus Apple's 1.097, and a maximum five-year drawdown of -50.24% compared with Apple's -19.47%.

Does either company pay a dividend?

Apple pays a dividend with a yield of 0.32% and a payout ratio of 12.69%, alongside a positive buyback yield of 2.3%. Coinbase's dividend yield is 0%, with a payout ratio of 19.96% and a negative buyback yield of -0.74%.

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