Apple Inc. (AAPL)vs Intel Corporation (INTC)

Quick verdict

Apple Inc. (AAPL) and Intel Corporation (INTC) appeal to different investors. On our six-factor framework, AAPL scores 3 and INTC scores 3. AAPL looks cheaper on the multiples that matter, while AAPL grows faster and INTC earns higher returns on capital. The two are evenly matched overall, so your priority — value, growth, income or safety — should decide it.

2-year relative performance

At-a-glance comparison

Business model and revenue mix

Apple Inc. operates in Consumer Electronics (Technology), while Intel Corporation sits in Semiconductors (Technology). Because both compete in the same sector, this is a direct head-to-head and the financial differences below are especially meaningful. AAPL carries a beta of 1.12 versus 1.66 for INTC, meaning INTC has historically been the more volatile of the two.

Valuation

On valuation, AAPL is the cheaper stock. AAPL trades on a forward P/E of 26.84 and EV/EBITDA of 36.29, against 40.53 and 24.36 for INTC. Price-to-sales is 1.24 vs 12.99, and free-cash-flow yield is 3.6% vs 3.5%. A higher multiple is only justified if the company can sustain faster growth or wider margins, which is exactly what the next sections test.

Growth profile

AAPL is the faster grower. AAPL has compounded revenue at 36.2% over three years with EPS growth of 55.8%, while INTC has delivered 17.2% revenue and 15.0% EPS growth. Growth like this is the single biggest driver of long-term returns, but it also tends to come with a richer valuation, so it must be weighed against the multiples above.

Profitability and quality

On profitability and quality, INTC is stronger. AAPL posts a 19.4% operating margin, 36.4% return on equity and 26.4% return on invested capital. INTC posts 37.7%, 50.5% and 34.6% respectively. Return on invested capital above roughly 15% is a hallmark of a durable competitive advantage, so this metric deserves particular attention.

Balance-sheet risk

AAPL has the safer balance sheet. AAPL carries net-debt/EBITDA of -1.50x with a current ratio of 1.47, versus 2.98x and 3.56 for INTC. Lower leverage gives a company more room to invest through a downturn and reduces the risk of dilution or distress.

Price performance and shareholder returns

Over the past year AAPL returned 73.5% against 103.1% for INTC; on a three-year annualised basis it is 27.2% vs 12.8%. AAPL yields 0.0% and INTC yields 3.7%. Past performance never guarantees future results, but the multi-year track record shows how the market has rewarded each business so far.

Which stock fits which investor

For value-oriented investors, AAPL is the better fit on today's multiples. Growth investors will likely prefer AAPL, which is expanding faster. Income investors should lean toward INTC for its higher shareholder yield, while investors who prize quality-at-a-reasonable-price will favour INTC for its superior returns on capital. This is a comparison of facts, not a recommendation — your time horizon, risk tolerance and existing holdings should drive the final decision.

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

Frequently asked questions

Is AAPL or INTC the better buy right now?

Neither is universally "better." AAPL scores 3 and INTC scores 3 on our six-factor framework. AAPL is cheaper, AAPL grows faster, and INTC is higher quality — so the right pick depends on your objective.

Which stock is cheaper, AAPL or INTC?

AAPL is the cheaper stock across forward P/E (26.84 vs 40.53), EV/EBITDA (36.29 vs 24.36) and price-to-sales (1.24 vs 12.99).

Which has grown faster, AAPL or INTC?

AAPL has the stronger growth profile, with three-year revenue CAGR of 36.2% for AAPL versus 17.2% for INTC.

Which stock pays a bigger dividend?

AAPL yields 0.0% and INTC yields 3.7%, so INTC is the stronger income choice.

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