Apple Inc. (AAPL) vs. Research In Motion Ltd (BBRY) In Terms Of Value


Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB) has gone a long way in turning things around. In fact, the company’s stock trend is the opposite of Apple Inc. (NASDAQ:AAPL)’s over the last six months. So which stock provides better value for investors?

Apple Inc. (AAPL) vs. Research In Motion Ltd (BBRY) In Terms Of Value

Apple Inc. (NASDAQ:AAPL) is currently trading around $417 per share, while Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB) is trading around $15 per share. Seeking Alpha contributor Gillian Mauyen believes the BlackBerry maker is the better value at this point in time, although earlier this month analysts at Morgan Stanley said they believe BlackBerry 10 is being replaced by Apple’s iPhone—even though they are also bullish on Research In Motion.

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Mauyen examined the finances of both Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB) and Apple Inc. (NASDAQ:AAPL) In terms of gross margins, which are the main concern of Apple investors, the BlackBerry maker is the clear winner. The company’s margins dropped dramatically in the months leading up to the release of the BlackBerry Z10.  Meanwhile, Apple’s margins fell. The two crossed during the March quarter, so the trend on Research In Motion’s margins is much better than Apple’s.

Apple Inc. (NASDAQ:AAPL) wins in the expense category, which is given in terms of percentage of overall revenue, although Mauyen believes this trend will change as Research In Motion sells more BlackBerry Z10 and now Q10 handsets. The company’s revenues should increase, pushing the percentage of its expenses down. Meanwhile, Apple Inc. (NASDAQ:AAPL) is waiting to put out new devices, so it makes sense that the company is also spending less percentagewise on research and development. Apple said in its investor conference call that it will be late this year or early next year before we see any new products.

So investors who are looking for a near-term investment, may be more interested in Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB) than Apple Inc. (NASDAQ:AAPL), in Mauyen’s view.

At the moment of this writing, shares of Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB) were up 3.26 percent in pre-market trading at the NASDAQ, while shares of Apple Inc. (NASDAQ:AAPL) were up .66 percent.