Apple Inc. (AAPL)vs RKLB Holdings, Inc. (RKLB)

Quick verdict

Apple (AAPL) and RKLB Holdings differ materially in sector, profitability and risk profile. Apple trades on a P/E (TTM) of 40.26 and forward P/E of 26.84, close to RKLB's 37.73 and 29, but Apple's price-to-book of 46.1 is far above RKLB's 10.37. Profitability strongly favours Apple: net margin of 27.15% versus 10.02%, ROE of 146.69% versus 12.55%, and ROIC of 49.57% versus 10.68%. RKLB posted a higher 3-year revenue CAGR (18% vs 6.43%) but Apple's 5-year revenue CAGR (29.32%) and EPS CAGR (39.1% over 5 years) are considerably stronger. Apple carries an overall score of 4 against RKLB's 2, with 'A' verdicts across quality, balance sheet and income versus RKLB's 'B' valuation and growth ratings. Momentum also favours Apple, with a 1-year return of 73.53% against RKLB's 15.21%, though RKLB's beta of 1.81 signals higher volatility than Apple's 1.097.

2-year relative performance

At-a-glance comparison

Business model and revenue mix

Apple Inc. designs, manufactures and sells consumer electronics including smartphones, computers and wearables, operating within the Technology sector and Consumer Electronics industry, headquartered in the US. RKLB Holdings, Inc. is classified under the Consumer Defensive sector, Beverages industry, also US-based. The two companies therefore serve entirely different end markets and demand drivers: Apple's revenue is tied to global consumer technology cycles and hardware/services upgrade patterns, while RKLB operates in a defensive, non-cyclical consumer staples category. This sector distinction underpins many of the differences in margin structure, beta (1.097 for Apple vs 1.81 for RKLB) and growth cadence seen across the two companies' metrics.

Valuation

On earnings multiples, the two names are relatively close: Apple's trailing P/E of 40.26 and forward P/E of 26.84 sit near RKLB's 37.73 and 29 respectively. Price-to-sales is also similar, at 10.86 for Apple versus 11.08 for RKLB. The clearest valuation divergence is price-to-book, where Apple's 46.1 is more than four times RKLB's 10.37, reflecting Apple's asset-light balance sheet and substantial buyback history. On a growth-adjusted basis, Apple's PEG ratio of 1.39 is lower than RKLB's 2.12, suggesting Apple's valuation is comparatively more supported by its earnings growth profile. EV/EBITDA is notably higher for Apple (30.87) versus RKLB (11.07), while free cash flow yield is marginally lower for Apple (3.57% vs 3.86%). The overall valuation verdict for both is rated 'B'.

Growth profile

Growth trends differ by horizon. Over three years, RKLB's revenue CAGR of 18% outpaces Apple's 6.43%, and RKLB's 3-year EPS CAGR of 19.98% is also slightly ahead of Apple's 22.59% is actually higher for Apple. Over five years, the picture reverses: Apple's revenue CAGR of 29.32% and EPS CAGR of 39.1% substantially exceed RKLB's 15.12% and 14.4% respectively. This suggests Apple's longer-term growth trajectory has been considerably stronger, while RKLB has shown relatively faster recent top-line expansion over the shorter three-year window. Both companies carry a 'B' growth verdict, indicating comparable overall growth quality despite the differing time-horizon dynamics.

Profitability and quality

Apple demonstrates markedly stronger profitability across every measured metric. Gross margin stands at 47.86% for Apple versus 73.79% for RKLB, giving RKLB the edge at the gross level, but this advantage reverses further down the income statement. Apple's operating margin of 32.64% exceeds RKLB's 27.15%, and net margin of 27.15% is well above RKLB's 10.02%. Return metrics show the widest gap: Apple's ROE of 146.69% and ROIC of 49.57% dwarf RKLB's 12.55% and 10.68% respectively. These figures align with Apple's 'A' quality verdict compared with RKLB's overall lower score, indicating Apple converts revenue into shareholder returns considerably more efficiently on the metrics provided.

Balance-sheet risk

Apple holds cash of approximately $67.9 billion against total debt of $76.2 billion, producing a net debt/EBITDA of -1.5, indicating a net cash-like position on this metric. RKLB holds larger cash reserves of $51.4 billion against debt of $36.4 billion, but its net debt/EBITDA of 3.63 is notably higher, suggesting greater leverage relative to earnings. RKLB's current ratio of 2 is stronger than Apple's 1.07, pointing to more short-term liquidity headroom. However, Apple's interest coverage of 3.19 versus RKLB's 13.58 shows RKLB with materially greater capacity to service interest expense from operating earnings. Apple carries an 'A' balance sheet verdict overall.

Price performance and shareholder returns

Apple has delivered stronger recent performance, with a year-to-date return of 58.09% and 1-year return of 73.53%, compared with RKLB's 8.09% and 15.21%. Over three years annualised, Apple's 27.16% return also leads RKLB's 21.56%. Over five years annualised, however, RKLB's 29.98% return significantly outpaces Apple's -0.6%. Risk metrics differ too: Apple's maximum 5-year drawdown of -19.47% is considerably shallower than RKLB's -68.99%, and Apple's beta of 1.097 indicates lower volatility relative to the market than RKLB's 1.81. Apple carries an 'A' momentum verdict, consistent with its stronger recent short and medium-term returns shown in the data.

Which stock fits which investor

Based on the supplied verdicts, Apple is flagged as best suited to investors prioritising income and quality, reflecting its 'A' ratings in quality, balance sheet and income, alongside metrics such as a 27.15% net margin and 0.31% dividend yield with a 12.69% payout ratio. RKLB is flagged as best suited to investors prioritising value and growth, consistent with its lower price-to-book of 10.37 and 3-year revenue CAGR of 18%. Apple is tagged 'high-quality' with an overall score of 4, while RKLB is tagged 'high-volatility' with an overall score of 2 and a higher beta of 1.81 and deeper maximum drawdown of -68.99%.

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

Frequently asked questions

Which stock has the higher valuation, AAPL or RKLB?

On price-to-book, Apple is notably higher at 46.1 versus RKLB's 10.37. Earnings multiples are closer, with Apple's trailing P/E at 40.26 versus RKLB's 37.73, and forward P/E of 26.84 versus 29. Apple's PEG of 1.39 is lower than RKLB's 2.12, and both carry a 'B' valuation verdict.

Which company is more profitable?

Apple shows stronger profitability on net margin (27.15% vs 10.02%), ROE (146.69% vs 12.55%) and ROIC (49.57% vs 10.68%). RKLB has a higher gross margin at 73.79% versus Apple's 47.86%, but this does not translate into higher net-level returns. Apple carries an 'A' quality verdict overall.

Which stock has performed better recently?

Apple has stronger short-term returns, with a 1-year return of 73.53% and YTD return of 58.09%, compared with RKLB's 15.21% and 8.09%. Over five years annualised, RKLB's 29.98% return exceeds Apple's -0.6%, though RKLB also experienced a deeper maximum drawdown of -68.99% versus Apple's -19.47%.

Which stock carries more risk based on the data?

RKLB shows higher volatility characteristics, with a beta of 1.81 versus Apple's 1.097 and a maximum 5-year drawdown of -68.99% compared with Apple's -19.47%. RKLB is tagged 'high-volatility' in the data, while Apple is tagged 'high-quality', with an overall score of 4 versus RKLB's 2.

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