APP vs. BA: A Head-to-Head Stock Comparison

Company Overview

APP’s market capitalization stands at 140.14 billion USD, while BA’s is 157.60 billion USD, indicating their market valuations are broadly comparable.

APP’s beta of 2.53 points to significantly higher volatility compared to BA (beta: 1.42), suggesting APP has greater potential for both gains and losses relative to market movements.

Performance Comparison

This chart compares the performance of APP and BA over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).

Data is adjusted for dividends and splits.

Valuation Metrics Comparison

This section compares the market valuation of APP and BA. Key takeaways regarding their valuation, when viewed within their industry context, are presented in the commentary that follows.

• APP’s Price-to-Earnings (P/E) ratio of 73.30 is very high, indicating its stock trades at a significant premium to its earnings, possibly due to strong investor sentiment or high growth expectations. BA’s P/E ratio of -13.68 is negative, signaling it is currently unprofitable.
• APP’s Forward PEG ratio of 2.94 is very high, suggesting its stock might be overvalued if its price has substantially outrun its future earnings growth forecast. BA’s Forward PEG ratio of -6.26 is negative, often an indicator of issues such as negative current earnings or anticipated earnings contraction, which calls its fundamental valuation into question.

Dividend Comparison

Neither APP nor BA currently pays a dividend; this often suggests they are reinvesting earnings for growth, prioritizing long-term expansion over immediate cash returns to shareholders.

Financial Strength Metrics Comparison

This section evaluates the financial strength of APP and BA. Noteworthy observations on their financial resilience, considered from an industry perspective, are detailed in the points that follow.

• BA’s quick ratio of 0.37 is low. This indicates that its readily available liquid assets, excluding inventory, might provide a thin cushion for its short-term obligations, highlighting potential constraints on its immediate debt-paying ability without selling inventory.
• APP’s Debt-to-Equity (D/E) ratio of 6.45 is very high, signifying a heavy reliance on debt and a high degree of financial leverage. BA’s D/E ratio of -16.13 reflects negative shareholder equity, a severe condition that undermines its financial foundation.
• BA’s Interest Coverage Ratio (ICR) of -3.55 is negative. This signals that its current operating earnings are insufficient to meet its interest obligations, a critical red flag for its financial health and capacity to manage its debt.