The high-technology computer industry has been around for about 50 years. It is a highly competitive sector with big profit margins. The following companies are the ones that have come out on top.
Apple (AAPL) has been around for 40 years and currently has a market value of $878 billion, the largest market capitalization in the NYSE. This was a company going out of business at one point in the past. Last year, it earned $48 billion on revenue of $229 billion. It has approximately $74 billion in cash and $241 billion in total debt. It yields 1.46%. Apple is a giant in its field. It is more than just a computer company.
Microsoft (MSFT), another company which has been around for 40 years, has a market value of $714 billion. At one point in time, Microsoft was worth more than Apple and always was. This started to change in the early 2000s. Microsoft earned $21 billion on revenue of $90 billion last year. It has $133 billion in cash and $169 billion in total debt. It yields 1.81%. Microsoft is capitalized to the teeth.
International Business Machines (IBM) has been around for over 105 years. It has a market value of $144 billion. Last year, it earned $11 billion on revenue of $79 billion. It has $8.5 billion in cash and almost $100 billion in total debt. It yields 3.85%. Although IBM is not capitalized as well as its two peers, it still is an impressive company.
Apple does more than twice the business than Microsoft and IBM combined! Apple’s market value, almost a trillion, is actually reasonable. IBM may seem cheap but the competitors in its industry are capitalized better – they are able to weather any financial storms in the future and have enough cash on hand to take advantage of opportunities quickly. Microsoft actually has enough cash to purchase the whole IBM company. IBM has been around the longest, but the numbers coming out of Microsoft and Apple are just ridiculous. We recommend waiting to purchase any of these securities. If the computer industry drops, hopefully, it will bring everyone down, in which case Apple would be a great purchase.
U.S. Business Investor Funds and Services 