Analyzing Apple (AAPL) & Electronics for Imaging (EFII)

Apple (NASDAQ: AAPL) and Electronics for Imaging (NASDAQ:EFII) are both technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, profitability and dividends.

Institutional and Insider Ownership

59.6% of Apple shares are owned by institutional investors. 0.1% of Apple shares are owned by insiders. Comparatively, 1.9% of Electronics for Imaging shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Apple and Electronics for Imaging’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Apple $229.23 billion 3.80 $48.35 billion $9.19 18.48
Electronics for Imaging $992.07 million 1.34 $45.54 million $0.65 44.83

Apple has higher revenue and earnings than Electronics for Imaging. Apple is trading at a lower price-to-earnings ratio than Electronics for Imaging, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations for Apple and Electronics for Imaging, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Apple 0 6 41 0 2.87
Electronics for Imaging 1 5 7 0 2.46

Apple presently has a consensus price target of $201.52, indicating a potential upside of 18.68%. Electronics for Imaging has a consensus price target of $44.22, indicating a potential upside of 51.76%. Given Electronics for Imaging’s higher probable upside, analysts clearly believe Electronics for Imaging is more favorable than Apple.

Dividends

Apple pays an annual dividend of $2.52 per share and has a dividend yield of 1.5%. Electronics for Imaging does not pay a dividend. Apple pays out 27.4% of its earnings in the form of a dividend. Apple has increased its dividend for 4 consecutive years.

Profitability

This table compares Apple and Electronics for Imaging’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Apple 21.09% 36.29% 13.95%
Electronics for Imaging 3.09% 3.67% 2.01%

Risk and Volatility

Apple has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500. Comparatively, Electronics for Imaging has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500.

Summary

Apple beats Electronics for Imaging on 12 of the 17 factors compared between the two stocks.

Apple Company Profile

Apple Inc. (Apple) designs, manufactures and markets mobile communication and media devices, personal computers, and portable digital music players, and a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications. The Company’s products and services include iPhone, iPad, Mac, iPod, Apple TV, a portfolio of consumer and professional software applications, the iOS and OS X operating systems, iCloud, and a variety of accessory, service and support offerings. The Company also delivers digital content and applications through the iTunes Store, App StoreSM, iBookstoreSM, and Mac App Store. The Company distributes its products worldwide through its retail stores, online stores, and direct sales force, as well as through third-party cellular network carriers, wholesalers, retailers, and value-added resellers. In February 2012, the Company acquired app-search engine Chomp.

Electronics for Imaging Company Profile

Electronics For Imaging, Inc. is engaged in digital printing, focused on the transformation of the printing, packaging, ceramic tile decoration, and textile industries from the use of traditional analog-based printing to digital on-demand printing. It operates through three segments. The Industrial Inkjet segment consists of its VUTEk and Matan super-wide and wide format display graphics, Reggiani textile, Jetrion label and packaging and Cretaprint ceramic tile decoration and construction material industrial digital inkjet printers; ceramic, water-based, and thermoforming ink, and digital inkjet printer parts, and professional services. The Productivity Software segment consists of a software suite that enables automated end-to-end business and production workflows for the print and packaging industry. The Fiery segment consists of digital front ends that transform digital copiers and printers into networked printing devices for the office, industrial and commercial printing markets.

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