Everyone knows Apple: an “American multinational technology company that specializes in consumer electronics, computer software, and online services.” With a loyal customer base and strong management, it is no surprise that this company generated $95B in free cash flow over the past year, as per the Motley Fool.
As of now, Apple’s main competitor is Samsung. Samsung’s new flip phone provides huge competition to Apple’s iPhones, with it being a completely new and more user-friendly model for consumers. Despite this, Apple has maintained a consistent total spending on products at over $347B, and it will continue to grow for the foreseeable future. In addition to this, Apple has also figured out a way to save money through the use of Intel Chips. Not only do these products help reduce costs, they remain more effective than previously used components.
Apple’s financials have grown significantly over the past year, providing yet another point for why this company is such a great long-term buy.
- Market Cap: $1.97T
- One of the highest in the entire world
- Revenue: $347B
- Profit Margin: 20.91%
- Operating Margin: 28.79%
Apple is built to last for a long time and will continue to grow into one of the biggest and most successful companies the world has ever seen.
Next, we have PayPal, who are “an American technology company operating an online payments system in the majority of countries that support online money transfers, and serves as an electronic alternative to traditional paper methods such as checks and money orders.” Since becoming independent from eBay, PayPal has remained a very consistent company in terms of updates, management, and general growth.
Over the past year, PayPal experienced a massive positive surge in various financial metrics solely because of Covid-19. The pandemic has completely revolutionized the way monetary transactions are made, with a transition from physical to digital payments. A recent Mastercard survey shows that 71% of customers expect to use less cash for transactions for the foreseeable future.
According to the Motley Fool, PayPal has 403M current active accounts, which accounts for a 19% increase in total payment volume. If you had invested in this company five years ago, you would have seen about 640% growth now. PayPal continues to take advantage of its huge market opportunity: increased engagement and the new introduction of cryptocurrency technology will guarantee an increase in general profitability.
As mentioned before, PayPal’s financials continue to remain as one of the best in its industry.
- Market Cap: $334B
- Revenue: $23.8B
- Profit Margin: 19.59%
- Operating Margin: 17.23%
- EBITDA Margin: 22.84%
Net Income, commonly referred to as net revenue, is one of the most important tools used for financial analysis. Essentially, it serves as a preliminary measure for defining a company’s earnings. This metric can simply be calculated by subtracting expenses from revenue. Generally, relatively higher or increases in net income demonstrate potential positive upcoming growth for the company.