APP vs. MSTR: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at APP and MSTR, comparing key factors like performance, valuation metrics, dividends, and financial strength. It’s built for investors or anyone curious to see how these two stocks match up.
Company Overview
With APP at 121.26 billion USD and MSTR at 110.10 billion USD, their market capitalizations sit in the same ballpark.
MSTR carries a higher beta at 3.81, indicating it’s more sensitive to market moves, while APP remains steadier at 2.39.
| Symbol | APP | MSTR |
|---|---|---|
| Company Name | AppLovin Corporation | MicroStrategy Incorporated |
| Country | US | US |
| Sector | Technology | Technology |
| Industry | Software - Application | Software - Application |
| CEO | Mr. Adam Arash Foroughi | Mr. Phong Q. Le |
| Price | 358.35 USD | 402.69 USD |
| Market Cap | 121.26 billion USD | 110.10 billion USD |
| Beta | 2.39 | 3.81 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | April 15, 2021 | June 11, 1998 |
| ADR | No | No |
Performance Comparison
This chart compares the performance of APP and MSTR over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).
Hover over the lines to see the investment’s value and total return (%) at specific dates.
Data is adjusted for dividends and splits.
Valuation Metrics Comparison
The section examines key financial ratios to assess the valuation of APP and MSTR based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.
- MSTR shows a negative P/E of -19.34, highlighting a year of losses, whereas APP at 63.43 trades on solid profitability.
- MSTR reports a negative Price-to-Free Cash Flow ratio of -5.36, showing a cash flow shortfall that could threaten its operational sustainability, while APP at 47.87 maintains positive cash flow.
| Symbol | APP | MSTR |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 63.43 | -19.34 |
| Forward PEG Ratio (TTM) | 2.43 | 0.07 |
| Price-to-Sales Ratio (P/S, TTM) | 23.61 | 239.72 |
| Price-to-Book Ratio (P/B, TTM) | 211.64 | 79.17 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 47.87 | -5.36 |
| EV-to-EBITDA (TTM) | 47.30 | -14.54 |
| EV-to-Sales (TTM) | 24.23 | 239.82 |
| EV-to-Free Cash Flow (TTM) | 49.12 | -5.37 |
Dividend Comparison
Neither APP nor MSTR currently pays a dividend yield; this often indicates they are reinvesting earnings for growth, prioritizing long-term expansion over immediate cash returns to shareholders.
| Symbol | APP | MSTR |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
Financial Strength Metrics Comparison
This section dives into the financial resilience of APP and MSTR, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.
- MSTR’s current ratio of 0.66 indicates its assets may not cover near-term debts, whereas APP at 1.68 maintains healthy liquidity.
- MSTR posts a quick ratio of 0.66, indicating limited coverage of short-term debts from its most liquid assets—while APP at 1.68 enjoys stronger liquidity resilience.
- APP is heavily leveraged (debt-to-equity ratio 6.45), which can boost returns but raises risk if borrowing costs climb, while MSTR at 0.08 keeps leverage at a more moderate level.
- APP meets its interest obligations (ratio 7.41). In stark contrast, MSTR’s negative ratio (-229.74) means its operating earnings (EBIT) don't cover basic operations, let alone interest, signaling serious financial trouble.
| Symbol | APP | MSTR |
|---|---|---|
| Current Ratio (TTM) | 1.68 | 0.66 |
| Quick Ratio (TTM) | 1.68 | 0.66 |
| Debt-to-Equity Ratio (TTM) | 6.45 | 0.08 |
| Debt-to-Assets Ratio (TTM) | 0.65 | 0.00 |
| Interest Coverage Ratio (TTM) | 7.41 | -229.74 |