Investors are constantly on the hunt for the best company in an industry segment. But figuring out which is number one is not easy. Among the questions investors need to ask is: What the top dog is doing to stay ahead of the pack? Is it buying growth through acquisitions or sacrificing margins to gain revenue? No talent is required to buy growth or give away the store.
MORE FROM 24/7 WALL ST:
24/7 Wall St: The Eleven Reasons People Can't Sell Their Home
24/7 Wall St: More Evidence Apple Will Eventually Rule The PC World
24/7 Wall St: Holiday Spending Expected To Rise To $688.87 Per Person
24/7 Wall St. has examined several "duopolies" where there is a clear indication of who is number one and who is number two. We reviewed a number of factors including EPS growth, price-to-earnings ratio, and stock price performance. Our analysis is below.
Apple Inc. vs. Research in Motion (RIM): Comparing these two tech bellwethers is almost like choosing between a Porsche (Apple) and a Buick (RIM). Apple's devices are studies in elegance while RIM's are testaments practicality. Of course, Apple was first to market with the iPad, which sold 2 million in less than 60 days. RIM's tablet, the Playbook, came out last month, and has received some positive reviews. The Canadian company's BlackBerry continues to be the cell phone of choice for business. When it comes to the stocks, there is no comparison. Apple, whose shares have soared more than 50 percent this year, and trades at a price-to-earnings ratio of 20.99. Research In Motion trades at a p/e ratio of 9.33. Its shares are down more than 28 percent. Yesterday, Apple reported a 70 percent jump in fourth quarter results, beating analysts' forecasts. Shares fell because iPad sales were disappointing and the company's guidance was disappointing.