Here is an analysis of two momentum plays.
RIMM & AAPL both are wall street darlings.....as ZSA ZSA would say.
On a comparative basis AAPL is in OVERDRIVE as far as HOOPLA for iphone is concerned...it reminds me the launch of windows 95........yes it was a big deal..........
RIMM is almost overlooked in marketing/hoopla game............I personally think Blackberry is a stroke of GENIUS vs AAPL coming out with another COOL thing.
So let us see how RIMM & AAPL stack on a head to head GEE WHIZ comparison:
.....................AAPL 9/08......RIMM 2/08
Sales current Q..5.28B............$1.05B
YOY..............+20.9%............+71.3%
EPS current Q..71 cents..........$1.06
YOY...........+31.4%...............+55.8%
Sales 08 .....$28.95B...............$4.65B
YOY..........+22.3%.................+60%
EPS 08.......$4.05....................$4.80
YOY.........+14.7%..................+44.1%
PE 08.........30.74..................34.51
As you can see that RIMM is clearly beating AAPL by 3 times on both Sales & EPS growth rate but it is given a PE PREMIUM of only 12.2%..........
Also AAPL is given 7 months more of sales in this comparison as RIMM o8 ends in FEB and AAPL ends 08 SEP.........................
AAPL estimates reflects most of the iphone sales for the next 14 months.
In my analysis RIMM is a CLEAR BARGAIN going forward.
RIMM price targets are averaging $215...which is a gain of $49 from here a +22.7% gain on a very conservative target.
AAPL aggressive targets are $160 which is a POTENTIAL gain of $35 or +28% on extra 7 months of sales as compared to RIMM.
My analysis gives a "thumbs UP to RIMM".
Please do your own due diligence as I own RIMM in my portfolio.
BLOG does not give buy or sell.
Saleem
No comments:
Post a Comment