Wednesday, April 2, 2014

One company which can overtake Apple Inc.

It’s been around decade Apple Inc. (AAPL) that is the envy of utmost corporate officials. In 2003, Apple revenue grew up at an average rate of 38.1%, growth around $158.5 billion after
$ 6.2 Billion. Apple Inc., earning per share $44.15 from $0.10 over the same period-a tremendous annual growth rate 83.8%.Concurrently , Apple’s share price has grown up from $ 9.45 to $557 and this astonishing share price appreciation lifted Apple’s market capitalization up to  $515Billion from $6.9 Billion.

Apple Inc. products Include iPhone, iPad, iPod and Mac. Although, it hasn’t lose in many years but its products continue to be in growing stage with customers today. Company’s insistent success has a thought that it is the first company to be demanded a trillion dollar market capitalization.
Cisco System and Microsoft in late 1999 were at the same trillion dollars position when their market capitalization was around $500 Billion and Latter’s proposed $600Billion.Both companies Cisco and Microsoft market capitalization are now not that much as it used to be i.e $105 Billion and $230 Billion respectively.
History mentioned that the example of technological stocks is uncertain but tech sector competition is aggressive, and customer lethargy is the justifying aspect. The mini iPad and iPhone 5 are tremendous products for sure but even that they are lack with the previous Apple releases product.
Around the corner the one another company that is ExxonMobil, whose market capitalization is around $411 and it is second after Apple. ExxonMobil Corp - (XOM) which tracks Apple for $100Billion, but it seems like a race of tortoise and hare race. Here Hare represents often as a technology and Tortoise represents cohesive energy which is continually moving forward.
ExxonMobil is ranked as number one in integrated energy and it rarely retreats, and quickly standardized and inclining in upward direction. ExxonMobil revenue from 2002 to 2011 has grown at an average annual rate of 8.2% and its EPS growth rate is around 18% and its market capitalization growth rate is 5%. These growing rate are not that impressive in contrast with Apple’s but comparatively ExxonMobil generated around $486 Billion annual revenue which has been three time Apple’s annual revenue. Moreover, ExxonMobil is a biggest organization.
ExxonMobil could be the most ultimate dividend growth company. Since past 30 years , ExxonMobil’s dividend has grew up at an average annual rate of 6% and in past 10 years the average rate has flew up to  7.2%.In 2011 it paid to its stake holder around 36% of its free cash flow. Dividend growth is the main factor of this company; share price is nearly increased multiple times in past years.

As far as its market position is concern in integrated energy sector ExxonMobil is growing fast and recommended as far as its revenue is concern during past years.



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