Apple vs. Samsung

APPLE VS SAMSUNG
Name Course Instructor Date
II. Three-Year Returns
* Apple, Simple Return = (End Price- Starting Price) / Starting Price= $55.99- 28.26/ 28.26= 98.12%
* Three-Year for Samsung, Simple Return= 108,500-125.500/ 125,500= -13.55%
* Apple’s stock has gained value over the past three years, while Samsung’s stock has declined. Samsung has become less competitive with the growth of Chinese competition. Samsung’s stock value has declined in the past three years and investors have lost money.
III. Financial Calculations
A. Price-to-earnings ratio
Price-to-earnings ratio = Price per share/ Earnings per share
Apple
2017=38.53/2.3= 16.75
2018=56.44/ 2.98= 18.94
2019=55.99/ 2.97= 18.85
Samsung

2019

2018

2017

Price per share (KRW)

108,500

105,500

126,000

Price per share ( converted to $)

97.65

94.95

113.4

Earnings per share

2.7

5.76

5.54





Price-to-earnings ratio

36.17

16.48

20.47

B debt-to-equity
Debt-to-equity =Total liabilities/ equity
Apple
2017=241,272/134,047= 1.8
2018= 258,578/107,147= 2.41
2019=248,028/ 90,488=2.74
Samsung

2019

2018

2017

Total Liabilities

21809382.61

22460061.8

26492151.3

Equity

24096133.99

19946590

22556751.7





Debt to Equity

0.91

1.13

1.17

C return-on-equity ratio
Return to equity= Net Income or Profits/Shareholder's Equity
Apple
2017 =48.351 134,047= 36.1%
2018 =59,531/ 107,147= 55.6%
2019= 55,256/ 90, 488 =61.1%
Samsung
201721.0%
201819.0%
2019 8.69%
D earnings per share
Apple
2017 2.30
2018 2.98
20192.97
Samsung
2017 $ 5.3
2018 $ 5.87
20192.70
E Profit margins
Net margin= Net Income/ Revenue
Apple
Net income (loss)

2019 55,256,000

2018 59,531,000

2017 48,351,000

Net sales

260,174,000

265,595,000

229,234,000





Net margin

21.24%

22.41%

21.09%

Samsung

2019

2018

2017

Net income (loss)

1050076.09

1712790.16

639797.94

Net sales

30761501

31155637

29279046





Net Margin

3.41%

5.50%
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