Analyzing Apple (AAPL) & Socket Mobile (SCKT)

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Apple (NASDAQ:AAPL) and Socket Mobile (NASDAQ:SCKT) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, analyst recommendations, profitability, institutional ownership, risk, dividends and earnings.

Volatility & Risk

Apple has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500. Comparatively, Socket Mobile has a beta of -0.84, suggesting that its share price is 184% less volatile than the S&P 500.

Insider and Institutional Ownership

58.4% of Apple shares are held by institutional investors. Comparatively, 10.9% of Socket Mobile shares are held by institutional investors. 0.1% of Apple shares are held by insiders. Comparatively, 29.3% of Socket Mobile shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Apple and Socket Mobile’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Apple 21.98% 43.50% 14.98%
Socket Mobile -18.74% -3.45% -2.57%

Valuation & Earnings

This table compares Apple and Socket Mobile’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Apple $229.23 billion 4.69 $48.35 billion $9.21 23.76
Socket Mobile $21.29 million 0.48 -$1.43 million N/A N/A

Apple has higher revenue and earnings than Socket Mobile.

Dividends

Apple pays an annual dividend of $2.92 per share and has a dividend yield of 1.3%. Socket Mobile does not pay a dividend. Apple pays out 31.7% of its earnings in the form of a dividend. Apple has raised its dividend for 5 consecutive years.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Apple and Socket Mobile, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Apple 3 18 26 0 2.49
Socket Mobile 0 0 0 0 N/A

Apple currently has a consensus price target of $227.71, suggesting a potential upside of 4.04%. Given Apple’s higher probable upside, equities analysts plainly believe Apple is more favorable than Socket Mobile.

Summary

Apple beats Socket Mobile on 12 of the 14 factors compared between the two stocks.

Apple Company Profile

Apple Inc. designs, manufactures, and markets mobile communication and media devices, and personal computers to consumers, and small and mid-sized businesses; and education, enterprise, and government customers worldwide. The company also sells related software, services, accessories, networking solutions, and third-party digital content and applications. It offers iPhone, a line of smartphones; iPad, a line of multi-purpose tablets; and Mac, a line of desktop and portable personal computers, as well as iOS, macOS, watchOS, and tvOS operating systems. The company also provides iWork, a productivity suite that helps users create, present, and publish documents, presentations, and spreadsheets; and other application software, such as Final Cut Pro, Logic Pro X, and FileMaker Pro. In addition, it offers Apple TV that connects to consumers' TV and enables them to access digital content directly for streaming high definition video, playing music and games, and viewing photos; Apple Watch, a personal electronic device; and iPod touch, a digital music and media player. Further, the company sells Apple-branded and third-party accessories, such as headphones, displays, storage devices, Beats products, and other connectivity and computing products and supplies. Additionally, it offers iCloud, a cloud service that stores music, photos, contacts, calendars, mail, documents, and others; AppleCare support services; and Apple Pay, a cashless payment service. The company sells and delivers digital content and applications through the iTunes Store, App Store, Mac App Store, TV App Store, iBooks Store, and Apple Music. It also sells its products through its retail and online stores, and direct sales force; and third-party cellular network carriers, wholesalers, retailers, and value-added resellers. Apple Inc. has a strategic partnership with Salesforce to develop customer relationship management platform. The company was founded in 1977 and is headquartered in Cupertino, California.

Socket Mobile Company Profile

Socket Mobile, Inc. produces data capture products for mobile applications used in business mobility markets in the United States, Europe, Asia, and internationally. The company's products are incorporated into mobile applications used in mobile point of sale, enterprise mobility, asset tracking, control systems, logistics, event management, medical, and education. It provides cordless data capture devices that connect over Bluetooth and work with applications running on smartphones, mobile computers, and tablets; and software developer kits to mobile application developers to enable them to integrate its products into their applications. The company offers barcode scanning products for 1D imager and laser, and 2D barcode scanning in standard and durable cases. It is also developing D600, a contactless SmartTag reader writer version of its durable handheld barcode scanner that reads and writes various types of electronic SmartTags, including near field communications. In addition, the company offers SocketCare services program, which provides extended warranty and accidental breakage coverage for various products. It markets its products through a network of distributors and on-line resellers, application developers, and value added resellers. The company was formerly known as Socket Communications, Inc. and changed its name to Socket Mobile, Inc. in April 2008. Socket Mobile, Inc. was founded in 1992 and is headquartered in Newark, California.

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