Apple Inc. (AAPL)vs NVIDIA Corporation (NVDA)

Quick verdict

Apple Inc. (AAPL) and NVIDIA Corporation (NVDA) appeal to different investors. On our six-factor framework, AAPL scores 1 and NVDA scores 5. NVDA looks cheaper on the multiples that matter, while NVDA grows faster and NVDA earns higher returns on capital. Overall, NVDA edges this comparison, but the right pick depends on whether you prioritise value, growth, income or balance-sheet safety.

2-year relative performance

At-a-glance comparison

Business model and revenue mix

Apple Inc. operates in Consumer Electronics (Technology), while NVIDIA 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 1.10 versus 2.21 for NVDA, meaning NVDA has historically been the more volatile of the two.

Valuation

On valuation, NVDA is the cheaper stock. AAPL trades on a forward P/E of 26.84 and EV/EBITDA of 31.46, against 10.38 and 24.73 for NVDA. Price-to-sales is 11.06 vs 18.82, and free-cash-flow yield is 3.6% vs 4.3%. 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

NVDA is the faster grower. AAPL has compounded revenue at 6.4% over three years with EPS growth of 22.6%, while NVDA has delivered 65.5% revenue and 66.0% 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, NVDA is stronger. AAPL posts a 32.6% operating margin, 146.7% return on equity and 49.6% return on invested capital. NVDA posts 64.0%, 111.7% and 63.0% 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

NVDA has the safer balance sheet. AAPL carries net-debt/EBITDA of -1.50x with a current ratio of 1.07, versus -0.17x and 3.44 for NVDA. 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 75.1% for NVDA; on a three-year annualised basis it is 27.2% vs 3.0%. AAPL yields 0.3% and NVDA yields 0.1%. 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, NVDA is the better fit on today's multiples. Growth investors will likely prefer NVDA, which is expanding faster. Income investors should lean toward NVDA for its higher shareholder yield, while investors who prize quality-at-a-reasonable-price will favour NVDA 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: NVDA
• Growth: NVDA
• Income: NVDA
• Quality: NVDA

Frequently asked questions

Is AAPL or NVDA the better buy right now?

Neither is universally "better." AAPL scores 1 and NVDA scores 5 on our six-factor framework. NVDA is cheaper, NVDA grows faster, and NVDA is higher quality — so the right pick depends on your objective.

Which stock is cheaper, AAPL or NVDA?

NVDA is the cheaper stock across forward P/E (26.84 vs 10.38), EV/EBITDA (31.46 vs 24.73) and price-to-sales (11.06 vs 18.82).

Which has grown faster, AAPL or NVDA?

NVDA has the stronger growth profile, with three-year revenue CAGR of 6.4% for AAPL versus 65.5% for NVDA.

Which stock pays a bigger dividend?

AAPL yields 0.3% and NVDA yields 0.1%, so NVDA is the stronger income choice.

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