Seek Returns logo

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

Updated on

Here’s a clear look at APP and ETN, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolAPPETN
Company NameAppLovin CorporationEaton Corporation plc
CountryUnited StatesIreland
GICS SectorInformation TechnologyIndustrials
GICS IndustrySoftwareElectrical Equipment
Market Capitalization139.49 billion USD134.78 billion USD
ExchangeNasdaqGSNYSE
Listing DateApril 15, 2021June 1, 1972
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of APP and ETN by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

APP vs. ETN: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolAPPETN
5-Day Price Return-7.57%-2.50%
13-Week Price Return13.87%5.14%
26-Week Price Return8.49%12.48%
52-Week Price Return377.82%16.55%
Month-to-Date Return5.61%-10.01%
Year-to-Date Return27.41%4.32%
10-Day Avg. Volume7.65M2.26M
3-Month Avg. Volume6.15M2.42M
3-Month Volatility56.57%26.60%
Beta2.481.20

Profitability

Return on Equity (TTM)

APP

257.74%

Software Industry

Max
59.01%
Q3
21.98%
Median
7.15%
Q1
-11.12%
Min
-51.24%

APP’s Return on Equity of 257.74% is exceptionally high, placing it well beyond the typical range for the Software industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

ETN

21.03%

Electrical Equipment Industry

Max
37.56%
Q3
20.60%
Median
14.38%
Q1
4.35%
Min
0.90%

In the upper quartile for the Electrical Equipment industry, ETN’s Return on Equity of 21.03% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

APP vs. ETN: A comparison of their Return on Equity (TTM) against their respective Software and Electrical Equipment industry benchmarks.

Net Profit Margin (TTM)

APP

45.72%

Software Industry

Max
48.14%
Q3
18.23%
Median
5.60%
Q1
-9.22%
Min
-49.36%

A Net Profit Margin of 45.72% places APP in the upper quartile for the Software industry, signifying strong profitability and more effective cost management than most of its peers.

ETN

15.56%

Electrical Equipment Industry

Max
20.43%
Q3
10.97%
Median
6.07%
Q1
3.16%
Min
0.29%

A Net Profit Margin of 15.56% places ETN in the upper quartile for the Electrical Equipment industry, signifying strong profitability and more effective cost management than most of its peers.

APP vs. ETN: A comparison of their Net Profit Margin (TTM) against their respective Software and Electrical Equipment industry benchmarks.

Operating Profit Margin (TTM)

APP

52.02%

Software Industry

Max
57.34%
Q3
20.60%
Median
7.84%
Q1
-8.72%
Min
-51.37%

An Operating Profit Margin of 52.02% places APP in the upper quartile for the Software industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

ETN

19.27%

Electrical Equipment Industry

Max
26.20%
Q3
14.31%
Median
7.54%
Q1
3.77%
Min
-5.64%

An Operating Profit Margin of 19.27% places ETN in the upper quartile for the Electrical Equipment industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

APP vs. ETN: A comparison of their Operating Profit Margin (TTM) against their respective Software and Electrical Equipment industry benchmarks.

Profitability at a Glance

SymbolAPPETN
Return on Equity (TTM)257.74%21.03%
Return on Assets (TTM)42.29%9.99%
Net Profit Margin (TTM)45.72%15.56%
Operating Profit Margin (TTM)52.02%19.27%
Gross Profit Margin (TTM)80.87%38.45%

Financial Strength

Current Ratio (MRQ)

APP

2.74

Software Industry

Max
3.83
Q3
2.31
Median
1.45
Q1
1.03
Min
0.24

APP’s Current Ratio of 2.74 is in the upper quartile for the Software industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

ETN

1.24

Electrical Equipment Industry

Max
3.02
Q3
1.99
Median
1.41
Q1
1.07
Min
0.80

ETN’s Current Ratio of 1.24 aligns with the median group of the Electrical Equipment industry, indicating that its short-term liquidity is in line with its sector peers.

APP vs. ETN: A comparison of their Current Ratio (MRQ) against their respective Software and Electrical Equipment industry benchmarks.

Debt-to-Equity Ratio (MRQ)

APP

3.01

Software Industry

Max
2.14
Q3
0.90
Median
0.29
Q1
0.00
Min
0.00

With a Debt-to-Equity Ratio of 3.01, APP operates with exceptionally high leverage compared to the Software industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

ETN

0.59

Electrical Equipment Industry

Max
1.44
Q3
0.99
Median
0.56
Q1
0.24
Min
0.00

ETN’s Debt-to-Equity Ratio of 0.59 is typical for the Electrical Equipment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

APP vs. ETN: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Software and Electrical Equipment industry benchmarks.

Interest Coverage Ratio (TTM)

APP

6.44

Software Industry

Max
67.02
Q3
19.86
Median
0.70
Q1
-12.50
Min
-53.00

APP’s Interest Coverage Ratio of 6.44 is positioned comfortably within the norm for the Software industry, indicating a standard and healthy capacity to cover its interest payments.

ETN

36.12

Electrical Equipment Industry

Max
36.12
Q3
19.29
Median
9.38
Q1
1.16
Min
-10.92

ETN’s Interest Coverage Ratio of 36.12 is in the upper quartile for the Electrical Equipment industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

APP vs. ETN: A comparison of their Interest Coverage Ratio (TTM) against their respective Software and Electrical Equipment industry benchmarks.

Financial Strength at a Glance

SymbolAPPETN
Current Ratio (MRQ)2.741.24
Quick Ratio (MRQ)2.540.63
Debt-to-Equity Ratio (MRQ)3.010.59
Interest Coverage Ratio (TTM)6.4436.12

Growth

Revenue Growth

APP vs. ETN: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

APP vs. ETN: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

APP

0.00%

Software Industry

Max
0.08%
Q3
0.03%
Median
0.00%
Q1
0.00%
Min
0.00%

APP currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

ETN

1.16%

Electrical Equipment Industry

Max
2.20%
Q3
1.53%
Median
1.01%
Q1
0.00%
Min
0.00%

ETN’s Dividend Yield of 1.16% is consistent with its peers in the Electrical Equipment industry, providing a dividend return that is standard for its sector.

APP vs. ETN: A comparison of their Dividend Yield (TTM) against their respective Software and Electrical Equipment industry benchmarks.

Dividend Payout Ratio (TTM)

APP

0.00%

Software Industry

Max
1.32%
Q3
0.53%
Median
0.00%
Q1
0.00%
Min
0.00%

APP has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

ETN

39.77%

Electrical Equipment Industry

Max
119.44%
Q3
51.87%
Median
27.71%
Q1
0.00%
Min
0.00%

ETN’s Dividend Payout Ratio of 39.77% is within the typical range for the Electrical Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

APP vs. ETN: A comparison of their Dividend Payout Ratio (TTM) against their respective Software and Electrical Equipment industry benchmarks.

Dividend at a Glance

SymbolAPPETN
Dividend Yield (TTM)0.00%1.16%
Dividend Payout Ratio (TTM)0.00%39.77%

Valuation

Price-to-Earnings Ratio (TTM)

APP

57.41

Software Industry

Max
149.35
Q3
100.21
Median
47.97
Q1
26.77
Min
11.68

APP’s P/E Ratio of 57.41 is within the middle range for the Software industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

ETN

34.15

Electrical Equipment Industry

Max
81.85
Q3
44.17
Median
27.61
Q1
18.62
Min
7.73

ETN’s P/E Ratio of 34.15 is within the middle range for the Electrical Equipment industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

APP vs. ETN: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Software and Electrical Equipment industry benchmarks.

Price-to-Sales Ratio (TTM)

APP

26.25

Software Industry

Max
25.24
Q3
13.52
Median
8.15
Q1
4.87
Min
0.98

With a P/S Ratio of 26.25, APP trades at a valuation that eclipses even the highest in the Software industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

ETN

5.30

Electrical Equipment Industry

Max
8.18
Q3
4.02
Median
1.84
Q1
0.97
Min
0.44

ETN’s P/S Ratio of 5.30 is in the upper echelon for the Electrical Equipment industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

APP vs. ETN: A comparison of their Price-to-Sales Ratio (TTM) against their respective Software and Electrical Equipment industry benchmarks.

Price-to-Book Ratio (MRQ)

APP

101.50

Software Industry

Max
30.95
Q3
14.91
Median
7.75
Q1
3.60
Min
0.38

At 101.50, APP’s P/B Ratio is at an extreme premium to the Software industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

ETN

7.51

Electrical Equipment Industry

Max
8.50
Q3
4.53
Median
3.39
Q1
1.70
Min
0.51

ETN’s P/B Ratio of 7.51 is in the upper tier for the Electrical Equipment industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

APP vs. ETN: A comparison of their Price-to-Book Ratio (MRQ) against their respective Software and Electrical Equipment industry benchmarks.

Valuation at a Glance

SymbolAPPETN
Price-to-Earnings Ratio (TTM)57.4134.15
Price-to-Sales Ratio (TTM)26.255.30
Price-to-Book Ratio (MRQ)101.507.51
Price-to-Free Cash Flow Ratio (TTM)48.1840.98