TO: Apple CEO, Tim Cook
FROM: Leah Kliegman
SUBJECT: Comparative Financial Analysis
DATE: May 5, 2014
Apple, Inc. shows greater financial strength compared to its competitor, Blackberry
Limited. Apple has significantly higher stock prices, revenue, net income and earnings per share
than Blackberry. While both are popular electronic companies, Apple has the upper hand and
remains to be most people’s top choice over Blackberry in the electronic industry.
Higher Stock Prices for Apple
On May 1, 2013 Apple’s stock prices were listed at $444.46 per share (Yahoo Finance,
2014). (Yahoo Finance, 2014). Six months ago, on November 1, 2013 Apple’s stock price was
listed at $524.02 per share (Yahoo Finance, 2014). Most recently, Apple’s stock prices were
listed at $592 per share on May 1, 2014 (Yahoo Finance, 2014).
Blackberry’s stock prices are significantly lower than Apple’s stock prices. On May 1,
2013 Blackberry’s stocks were listed at $16.37 per share (Yahoo Finance, 2014). Six months ago
on November 1, 2013 their stock was listed at $8 per share (Yahoo Finance, 2014). On May 1,
2014, Blackberry’s stock prices were listed at $7.68 per share (Yahoo Finance, 2014). Figure 1
shows that Apple’s stock prices are considerably higher than Blackberry’s stock prices, which
demonstrates that the company is more valuable.
Figure 1: Stock Prices
$700.00
$600.00
$500.00
$400.00
Apple
$300.00
BlackBerry
$200.00
$100.00
$0.00
5/1/13
11/1/13
5/1/14
Source: Yahoo Finance, 2014
Apple Revenue in Billions, Blackberry in Millions
Apple’s revenue was measured for 2011, 2012, and 2013 in billions, whereas
Blackberry’s revenue was measured the same years but only counted in millions. Apple’s
revenue was $108.249 billion, $156.508 billion, and $170.910 billion for the years 2011, 2012,
and 2013 respectively (Standards & Poor NetAdvantage, 2014). Blackberry’s revenue was
$4.235 million, $4.908 million, and $2.808 for the years 2011, 2012, and 2013 respectively
(Standards & Poor NetAdvantage, 2014). Apple has the upper hand because their revenue is
significantly higher than Blackberry’s revenue. Figure 2 and Figure 3 shows two graphs
comparing Apple’s revenue and Blackberry’s revenue.
Figure 2: Apple Revenue
Apple Revenue (in Billions)
180
160
140
120
100
80
60
40
20
0
2011
2012
2013
Source: Standards & Poor NetAdvantage, 2014
Figure 3: Blackberry Revenue
BlackBerry Revenue (in Millions)
6
5
4
3
2
1
0
2011
2012
Source: Standards & Poor NetAdvantage, 2014
2013
No Price Per Earnings Ratio for Blackberry
Apple has a Price-Earnings (P/E) ratio of 14.12 (Yahoo Finance, 2014). Blackberry’s P/E
ratio data was not available through any online sources (Yahoo Finance, 2014). Because this data
was not available, it could indicate that Blackberry’s P/E ratio was negative. Because Apple has
a higher P/E ratio, it means that the company is more financially stable and more valuable to
investors. No charts are used for this information because there is no data available to compare to
Apple’s financial data.
Apple, Inc. With Higher Net Income
Apple’s net income was significantly higher than Blackberry’s net income for the years
2011, 2012, and 2013. Apple’s net income was $25.992 million for 2011, $41.733 million for
2012, and $37.037 million for 2013 (Standards & Poor NetAdvantage, 2014). Blackberry’s net
income was $3.411 million, $1.164 million, and -$6.28 million for the years 2011, 2012, and
2013 respectively (Standards & Poor NetAdvantage, 2014). By looking at these statistics, one
can clearly see that Apple, once again, has the upper hand over Blackberry. Their net income is
drastically higher, meaning that they are making more money. Figure 4 below shows the
differences between Apple and Blackberry’s net income.
Figure 4: Net Income
Net Income (in Millions)
50
40
30
Apple
20
Blackberry
10
0
2011
2012
2013
-10
Source: Standards & Poor NetAdvantage, 2014
Earnings Per Share Higher for Apple
Apple’s earnings per share (EPS) was higher than Blackberry’s EPS. Apple’s EPS was
listed at 41.73 (Yahoo Finance, 2014). Blackberry’s EPS was listed at -11.18 (Yahoo Finance,
2014). Since Apple has a higher EPS, the company is more valuable to investors because it
shows that their shares of stock are worth more money.
Figure 5: Apple vs. Blackberry EPS
Earnings per Share (EPS)
50
40
30
20
10
0
-10
-20
Apple
Source: Yahoo Finance, 2014
Blackberry
Conclusion
Blackberry Limited was chosen as Apple, Inc.’s competitor because they are both popular
companies in the electronic industry. Many consumers constantly choose between Blackberry
and or Apple for their electronic products. Since Blackberry and Apple are both popular in this
industry, they were compared in relationship to one another between stock prices, revenue, P/E
ratio, net income, and EPS.
Between these comparisons, you can conclude that Apple has the upper hand against
Blackberry for several reasons. Apple’s s stock prices were much higher than Blackberry’s stock
prices. Apple’s stocks ranged between the $500 range, whereas Blackberry’s only range between
$10 to $20 per share. Apples revenue was measured in billions, whereas Blackberry’s revenue
could only be measured in millions. Apple’s net income and EPS were both significantly higher
than Blackberry’s income and EPS as well.
Each of these categories is important to measure when comparing the financial strengths
of competing companies. The stock prices, P/E ratio and EPS show how valuable and volatile a
company is within their industry. These indices are important to measure to show investors what
company might be the best choice to invest in. The revenue and net income shows both investors
and consumers how well a company is doing compared to its competitors as well as its overall
performance. Overall, all five of these indices show the company’s value and potential to grow
to investors as well as consumers.
Works Cited
APPL competitors. (n.d.). Retrieved May 1, 2014, from Yahoo Finance website:
http://finance.yahoo.com/q/co?s=AAPL+Competitors
Apple inc. (2014). Retrieved from Standards & Poor NetAdvantage database.
Blackberry ltd. (2014). Retrieved from Standards & Poor NetAdvantage database.