Apple (NASDAQ:AAPL) versus Intchains Group (NASDAQ:ICG) Critical Analysis

Apple (NASDAQ:AAPL) and Intchains Group (NASDAQ:ICG) are both technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Earnings and Valuation

This table compares Apple and Intchains Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Apple	$416.16 billion	10.97	$112.01 billion	$8.72	35.86
Intchains Group	$31.58 million	1.77	-$6.80 million	($0.12)	-7.67

Apple has higher revenue and earnings than Intchains Group. Intchains Group is trading at a lower price-to-earnings ratio than Apple, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations for Apple and Intchains Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Apple	4	12	22	1	2.51
Intchains Group	1	1	2	0	2.25

Apple presently has a consensus price target of $330.53, suggesting a potential upside of 5.71%. Intchains Group has a consensus price target of $2.50, suggesting a potential upside of 171.74%. Given Intchains Group’s higher probable upside, analysts clearly believe Intchains Group is more favorable than Apple.

Institutional and Insider Ownership

67.7% of Apple shares are owned by institutional investors. 0.1% of Apple shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Apple has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500. Comparatively, Intchains Group has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500.

Profitability

This table compares Apple and Intchains Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Apple	27.62%	135.46%	34.11%
Intchains Group	-24.68%	-5.29%	-5.08%

Summary

Apple beats Intchains Group on 14 of the 15 factors compared between the two stocks.

About Apple

Apple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. The company offers iPhone, a line of smartphones; Mac, a line of personal computers; iPad, a line of multi-purpose tablets; and wearables, home, and accessories comprising AirPods, Apple TV, Apple Watch, Beats products, and HomePod. It also provides AppleCare support and cloud services; and operates various platforms, including the App Store that allow customers to discover and download applications and digital content, such as books, music, video, games, and podcasts. In addition, the company offers various services, such as Apple Arcade, a game subscription service; Apple Fitness+, a personalized fitness service; Apple Music, which offers users a curated listening experience with on-demand radio stations; Apple News+, a subscription news and magazine service; Apple TV+, which offers exclusive original content; Apple Card, a co-branded credit card; and Apple Pay, a cashless payment service, as well as licenses its intellectual property. The company serves consumers, and small and mid-sized businesses; and the education, enterprise, and government markets. It distributes third-party applications for its products through the App Store. The company also sells its products through its retail and online stores, and direct sales force; and third-party cellular network carriers, wholesalers, retailers, and resellers. Apple Inc. was founded in 1976 and is headquartered in Cupertino, California.

About Intchains Group

Intchains Group Limited designs and sells application-specific integrated circuit chips for blockchain applications in the People's Republic of China. The company also offers ancillary software, hardware, and other products. It serves distributors. Intchains Group Limited was founded in 2017 and is based in Pudong, China.