Apple Inc. has long been the most valuable U.S. company, but Microsoft Corp. seems poised to overtake it. A look back at the companies’ financial performance and a look ahead at expected revenue and profits make the case that Apple is no longer a growth stock and that Microsoft is the better long-term investment.
At the close on Friday, Apple AAPL,
+0.18%
remained in the top spot with a market capitalization of $2.892 trillion, just ahead of Microsoft MSFT,
+1.00%
at $2.887 trillion. Apple’s stack was down 3.4% for 2024, while Microsoft was up 3.3% for the new year.
P/E valuation
Here’s a quick comparison of total returns (with dividends reinvested) for the stocks, and for the SPDR S&P 500 ETF Trust SPY,
to show how the companies’ forward price-to-earnings valuations have moved, through the close on Thursday:
Apple’s forward P/E (price divided by rolling 12-month earnings-per-share estimates among analysts polled by FactSet) has more than doubled over the past five years. The entire stock market is more expensive than it was, as you can see with SPY’s valuation climbing 30%. Microsoft’s valuation on this basis has grown 46%, not only because its stock hasn’t performed as well as Apple’s stock has, but because Microsoft has grown its earnings per share much more quickly.
Looking back and looking ahead
Here’s a look at compound annual growth rates (CAGR) for the companies’ sales and earnings per share over the past five years and the S&P 500 SPX.
These are calendar-year numbers, adjusted by FactSet because some companies, including Apple, have fiscal years that don’t match the calendar. The numbers for 2023 are based on the first three quarters’ results and estimates for the fourth quarter. The table also includes projected CAGR for sales and earnings per share from 2023 through 2025.
Company or index
Estimated five-year sales CAGR through 2023
Estimated five-year EPS CAGR though 2023
Expected two-year sales CAGR through 2025
Expected two-year EPS CAGR through 2025
Apple Inc.
8.1%
15.4%
4.9%
8.2%
Microsoft Corp.
14.0%
19.4%
14.3%
16.2%
S&P 500
7.0%
7.2%
5.3%
12.3%
Source: FactSet
Over the past five years, Apple’s sales and earnings per share have grown at a faster pace than those of the S&P 500, but Microsoft has grown more quickly.
Looking ahead, the estimates point to a pace of sales growth for Apple that will trail that of the index and lag far behind Microsoft. Apple is also expected to increase earnings at a slowing pace, again way behind Microsoft and even the index.
A rapid pace of growth justifies a premium share price, so it makes sense that Microsoft now trades at a higher forward P/E than Apple does. But Apple’s premium to the full S&P 500 is difficult to justify, based on these numbers.
Analysts working for brokerage firms seem to agree. Here is a summary of ratings and price targets for Apple and Microsoft:
Following a stellar 2023 for both stocks, expectations for share price increases over the next year are modest. But the analysts favor Microsoft by a large margin.
TORONTO – Canada’s main stock index was up more than 250 points in late-morning trading, led by strength in the base metal and technology sectors, while U.S. stock markets also charged higher.
The S&P/TSX composite index was up 254.62 points at 23,847.22.
In New York, the Dow Jones industrial average was up 432.77 points at 41,935.87. The S&P 500 index was up 96.38 points at 5,714.64, while the Nasdaq composite was up 486.12 points at 18,059.42.
The Canadian dollar traded for 73.68 cents US compared with 73.58 cents US on Thursday.
The November crude oil contract was up 89 cents at US$70.77 per barrel and the October natural gas contract was down a penny at US2.27 per mmBTU.
The December gold contract was up US$9.40 at US$2,608.00 an ounce and the December copper contract was up four cents at US$4.33 a pound.
This report by The Canadian Press was first published Sept. 19, 2024.
Losing a loved one is never easy, and the legal steps that follow can add even more stress to an already difficult time.
For years, families in Vancouver (and Canada in general) have struggled with a complex probate process—filled with paperwork and legal challenges.
Thankfully, recent changes to Canada’s probate laws aim to make this process simpler and easier to navigate.
Let’s unearth how these updates can simplify the process for you and your family.
What is probate?
Probate might sound complicated, but it’s simply the legal process of settling someone’s estate after death.
Here’s how it works.
Validating the will. The court checks if the will is legal and valid.
Appointing an executor. If named in the will, the executor manages the estate. If not, the court appoints someone.
Settling debts and taxes. The executor (and you) pays debts and taxes before anything can be given.
Distributing the estate. Once everything is settled, the executor distributes the remaining assets according to the will or legal rules.
Probate ensures everything is done by the book, giving you peace of mind during a difficult time.
Recent Changes in Canadian Probate Laws
Several updates to probate law in the country are making the process smoother for you and your family.
Here’s a closer look at the fundamental changes that are making a real difference.
1) Virtual witnessing of wills
Now permanent in many provinces, including British Columbia, wills can be signed and witnessed remotely through video calls.
Such a change makes estate planning more accessible, especially for those in remote areas or with limited mobility.
2) Simplified process for small estates
Smaller estates, like those under 25,000 CAD in BC, now have a faster, simplified probate process.
Fewer forms and legal steps mean less hassle for families handling modest estates.
3) Substantial compliance for wills
Courts can now approve wills with minor errors if they reflect the person’s true intentions.
This update prevents unnecessary legal challenges and ensures the deceased’s wishes are respected.
These changes help make probate less stressful and more efficient for you and other families across Canada.
The Probate Process and You: The Role of a Probate Lawyer
(Image: Freepik.com)
Working with a probate lawyer in Vancouver can significantly simplify the probate process, especially given the city’s complex legal landscape.
Here’s how they can help.
Navigating the legal process
Probate lawyers ensure all legal steps are followed, preventing costly mistakes and ensuring the estate is managed properly.
Handling paperwork and deadlines
They manage all the paperwork and court deadlines, taking the burden off of you during this difficult time.
Resolving disputes
If conflicts arise, probate lawyers resolve them, avoiding legal battles.
Providing you peace of mind
With a probate lawyer’s expertise, you can trust that the estate is being handled efficiently and according to the law.
With a skilled probate lawyer, you can ensure the entire process is smooth and stress-free.
Why These Changes Matter
The updates to probate law make a big difference for Canadian families. Here’s why.
Less stress for you. Simplified processes mean you can focus on grieving, not paperwork.
Faster estate settlements. Estates are settled more quickly, so beneficiaries don’t face long delays.
Fewer disputes. Courts can now honor will with minor errors, reducing family conflicts.
Accessible for everyone. Virtual witnessing and easier rules for small estates make probate more accessible for everyone, no matter where you live.
With these changes, probate becomes smoother and more manageable for you and your family.
How to Prepare for the Probate Process
Even with the recent changes, being prepared makes probate smoother. Here are a few steps to help you prepare.
Create a will. Ensure a valid will is in place to avoid complications.
Choose an executor. Pick someone responsible for managing the estate and discuss their role with them.
Organize documents. Keep key financial and legal documents in one place for easy access.
Talk to your family. Have open conversations with your family to prevent future misunderstandings.
Get legal advice. Consult with a probate lawyer to ensure everything is legally sound and up-to-date.
These simple steps make the probate process easier for everyone involved.
Wrapping Up: Making Probate Easier in Vancouver
Recent updates in probate law are simplifying the process for families, from virtual witnessing to easier estate rules. These reforms are designed to ease the burden, helping you focus on what matters—grieving and respecting your dead loved ones’ final wishes.
Despite these changes, it’s best to consult a probate lawyer to ensure you can manage everything properly. Remember, they’re here to help you during this difficult time.
TORONTO – Canada’s main stock index was higher in late-morning trading, helped by strength in energy stocks, while U.S. stock markets also moved up.
The S&P/TSX composite index was up 34.91 points at 23,736.98.
In New York, the Dow Jones industrial average was up 178.05 points at 41,800.13. The S&P 500 index was up 28.38 points at 5,661.47, while the Nasdaq composite was up 133.17 points at 17,725.30.
The Canadian dollar traded for 73.56 cents US compared with 73.57 cents US on Monday.
The November crude oil contract was up 68 cents at US$69.70 per barrel and the October natural gas contract was up three cents at US$2.40 per mmBTU.
The December gold contract was down US$7.80 at US$2,601.10 an ounce and the December copper contract was up a penny at US$4.28 a pound.
This report by The Canadian Press was first published Sept. 17, 2024.
