APP vs. WDC: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at APP and WDC, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
APP’s market capitalization of 115.62 billion USD is substantially larger than WDC’s 23.05 billion USD, indicating a significant difference in their market valuations.
APP’s beta of 2.53 points to significantly higher volatility compared to WDC (beta: 1.54), suggesting APP has greater potential for both gains and losses relative to market movements.
| Symbol | APP | WDC |
|---|---|---|
| Company Name | AppLovin Corporation | Western Digital Corporation |
| Country | US | US |
| Sector | Technology | Technology |
| Industry | Software - Application | Computer Hardware |
| CEO | Adam Arash Foroughi | Tiang Yew Tan |
| Price | 341.64 USD | 66.08 USD |
| Market Cap | 115.62 billion USD | 23.05 billion USD |
| Beta | 2.53 | 1.54 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | April 15, 2021 | October 31, 1978 |
| ADR | No | No |
Historical Performance
This chart compares the performance of APP and WDC 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.
Profitability
Return on Equity
APP
224.68%
Software - Application Industry
- Max
- 59.01%
- Q3
- 17.85%
- Median
- 4.73%
- Q1
- -10.56%
- Min
- -52.94%
APP’s Return on Equity of 224.68% is exceptionally high, placing it well beyond the typical range for the Software - Application industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
WDC
16.28%
Computer Hardware Industry
- Max
- 123.03%
- Q3
- 15.78%
- Median
- -13.44%
- Q1
- -119.16%
- Min
- -227.95%
In the upper quartile for the Computer Hardware industry, WDC’s Return on Equity of 16.28% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Return on Invested Capital
APP
48.77%
Software - Application Industry
- Max
- 35.07%
- Q3
- 9.72%
- Median
- 0.76%
- Q1
- -8.68%
- Min
- -34.12%
APP’s Return on Invested Capital of 48.77% is exceptionally high, placing it well beyond the typical range for the Software - Application industry. This demonstrates an outstanding ability to deploy capital efficiently and create significant value.
WDC
23.19%
Computer Hardware Industry
- Max
- 30.37%
- Q3
- 20.44%
- Median
- 7.03%
- Q1
- -12.47%
- Min
- -31.70%
In the upper quartile for the Computer Hardware industry, WDC’s Return on Invested Capital of 23.19% signifies a highly effective use of its capital to generate profits when compared to its peers.
Net Profit Margin
APP
37.39%
Software - Application Industry
- Max
- 48.14%
- Q3
- 16.07%
- Median
- 1.83%
- Q1
- -9.60%
- Min
- -45.64%
A Net Profit Margin of 37.39% places APP in the upper quartile for the Software - Application industry, signifying strong profitability and more effective cost management than most of its peers.
WDC
11.34%
Computer Hardware Industry
- Max
- 40.72%
- Q3
- 10.87%
- Median
- 4.33%
- Q1
- -378.64%
- Min
- -753.20%
A Net Profit Margin of 11.34% places WDC in the upper quartile for the Computer Hardware industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin
APP
42.86%
Software - Application Industry
- Max
- 51.67%
- Q3
- 15.35%
- Median
- 1.79%
- Q1
- -12.42%
- Min
- -45.17%
An Operating Profit Margin of 42.86% places APP in the upper quartile for the Software - Application industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
WDC
17.80%
Computer Hardware Industry
- Max
- 42.27%
- Q3
- 13.53%
- Median
- 4.56%
- Q1
- -295.01%
- Min
- -592.84%
An Operating Profit Margin of 17.80% places WDC in the upper quartile for the Computer Hardware industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | APP | WDC |
|---|---|---|
| Return on Equity (TTM) | 224.68% | 16.28% |
| Return on Assets (TTM) | 33.64% | 10.00% |
| Return on Invested Capital (TTM) | 48.77% | 23.19% |
| Net Profit Margin (TTM) | 37.39% | 11.34% |
| Operating Profit Margin (TTM) | 42.86% | 17.80% |
| Gross Profit Margin (TTM) | 77.40% | 36.93% |
Financial Strength
Current Ratio
APP
1.68
Software - Application Industry
- Max
- 5.09
- Q3
- 2.84
- Median
- 1.70
- Q1
- 1.12
- Min
- 0.04
APP’s Current Ratio of 1.68 aligns with the median group of the Software - Application industry, indicating that its short-term liquidity is in line with its sector peers.
WDC
1.56
Computer Hardware Industry
- Max
- 20.73
- Q3
- 11.54
- Median
- 2.69
- Q1
- 1.40
- Min
- 0.73
WDC’s Current Ratio of 1.56 aligns with the median group of the Computer Hardware industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio
APP
6.45
Software - Application Industry
- Max
- 1.85
- Q3
- 0.77
- Median
- 0.18
- Q1
- 0.05
- Min
- 0.00
With a Debt-to-Equity Ratio of 6.45, APP operates with exceptionally high leverage compared to the Software - Application industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
WDC
1.36
Computer Hardware Industry
- Max
- 1.36
- Q3
- 0.67
- Median
- 0.04
- Q1
- 0.03
- Min
- 0.00
WDC’s leverage is in the upper quartile of the Computer Hardware industry, with a Debt-to-Equity Ratio of 1.36. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
Interest Coverage Ratio
APP
7.41
Software - Application Industry
- Max
- 39.23
- Q3
- 8.55
- Median
- 1.48
- Q1
- -14.59
- Min
- -39.97
APP’s Interest Coverage Ratio of 7.41 is positioned comfortably within the norm for the Software - Application industry, indicating a standard and healthy capacity to cover its interest payments.
WDC
8.65
Computer Hardware Industry
- Max
- 32.50
- Q3
- 21.85
- Median
- 4.98
- Q1
- -7.71
- Min
- -34.24
WDC’s Interest Coverage Ratio of 8.65 is positioned comfortably within the norm for the Computer Hardware industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | APP | WDC |
|---|---|---|
| Current Ratio (TTM) | 1.68 | 1.56 |
| Quick Ratio (TTM) | 1.68 | 1.31 |
| Debt-to-Equity Ratio (TTM) | 6.45 | 1.36 |
| Debt-to-Asset Ratio (TTM) | 0.65 | 0.45 |
| Net Debt-to-EBITDA Ratio (TTM) | 1.20 | 1.32 |
| Interest Coverage Ratio (TTM) | 7.41 | 8.65 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for APP and WDC. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
APP
0.00%
Software - Application Industry
- Max
- 3.66%
- Q3
- 0.00%
- 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.
WDC
0.15%
Computer Hardware Industry
- Max
- 9.24%
- Q3
- 1.58%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
WDC’s Dividend Yield of 0.15% is consistent with its peers in the Computer Hardware industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio
APP
0.00%
Software - Application Industry
- Max
- 81.09%
- Q3
- 0.00%
- 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.
WDC
0.00%
Computer Hardware Industry
- Max
- 193.79%
- Q3
- 30.72%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
WDC 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.
Dividend at a Glance
| Symbol | APP | WDC |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.15% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
Price-to-Earnings Ratio
APP
60.47
Software - Application Industry
- Max
- 194.31
- Q3
- 98.56
- Median
- 51.87
- Q1
- 22.76
- Min
- 1.02
APP’s P/E Ratio of 60.47 is within the middle range for the Software - Application industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
WDC
13.97
Computer Hardware Industry
- Max
- 24.60
- Q3
- 24.01
- Median
- 20.31
- Q1
- 18.24
- Min
- 13.38
In the lower quartile for the Computer Hardware industry, WDC’s P/E Ratio of 13.97 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
Forward P/E to Growth Ratio
APP
2.46
Software - Application Industry
- Max
- 15.44
- Q3
- 6.57
- Median
- 2.78
- Q1
- 0.55
- Min
- 0.00
APP’s Forward PEG Ratio of 2.46 is within the middle range of its peers in the Software - Application industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
WDC
25.87
Computer Hardware Industry
- Max
- 9.77
- Q3
- 5.18
- Median
- 1.77
- Q1
- 1.17
- Min
- 0.02
The Forward PEG Ratio is often not a primary valuation metric in the Computer Hardware industry.
Price-to-Sales Ratio
APP
22.51
Software - Application Industry
- Max
- 23.49
- Q3
- 11.14
- Median
- 5.62
- Q1
- 2.84
- Min
- 0.33
APP’s P/S Ratio of 22.51 is in the upper echelon for the Software - Application 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.
WDC
1.60
Computer Hardware Industry
- Max
- 57.61
- Q3
- 47.40
- Median
- 3.37
- Q1
- 1.56
- Min
- 0.43
WDC’s P/S Ratio of 1.60 aligns with the market consensus for the Computer Hardware industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio
APP
201.77
Software - Application Industry
- Max
- 21.03
- Q3
- 10.49
- Median
- 6.36
- Q1
- 2.89
- Min
- 0.12
The P/B Ratio is often not a primary valuation metric for the Software - Application industry.
WDC
4.23
Computer Hardware Industry
- Max
- 21.21
- Q3
- 14.71
- Median
- 9.28
- Q1
- 3.74
- Min
- 0.43
WDC’s P/B Ratio of 4.23 is within the conventional range for the Computer Hardware industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | APP | WDC |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 60.47 | 13.97 |
| Forward PEG Ratio (TTM) | 2.46 | 25.87 |
| Price-to-Sales Ratio (P/S, TTM) | 22.51 | 1.60 |
| Price-to-Book Ratio (P/B, TTM) | 201.77 | 4.23 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 45.64 | 27.00 |
| EV-to-EBITDA (TTM) | 45.16 | 9.21 |
| EV-to-Sales (TTM) | 23.13 | 1.86 |