By May 1998, Microsoft
For all the drama and silliness that surrounded the case, there's no disputing the truth that competitors and partners feared Microsoft. That company was nothing like the unfocused Mr. Softy value investors have come to appreciate in recent years. That company was a terror, tearing into enemies like a pit bull to raw meat.
And yet compared to today's Apple
Microsoft* |
March 1998** |
March 1997** |
Change |
---|---|---|---|
Revenue | $13,664 | $10,438 | 30.9% |
Gross margin | 91.8% | 89.6% | 220 basis pts. |
Return on capital | 32.3% | 33.1% | (80 basis pts.) |
Free cash flow | $5,928 | $4,048 | 46.4% |
Cash and investments | $16,444 | $9,905 | 66% |
Source: Capital IQ, a division of Standard & Poor's.
* All metrics calculated over the trailing 12 months.
** Numbers in millions.
Impressive, right? Microsoft's massive Windows, Office, and Internet Explorer franchises had rendered the Mac OS all but irrelevant, destroyed Netscape, gutted Novell
Apple* |
March 2011** |
March 2010** |
Change |
---|---|---|---|
Revenue | $87,451 | $51,123 | 71.1% |
Gross margin | 39.1% | 41.3% | (220 basis pts.) |
Return on capital | 31.5% | 29.5% | 200 basis pts. |
Free cash flow | $23,283 | $12,136 | 91.9% |
Cash and investments | $65,767 | $41,704 | 57.7% |
Source: Capital IQ, a division of Standard & Poor's.
* All metrics calculated over the trailing 12 months.
** Numbers in millions.
Apple is:
- Growing revenue and cash flow twice as fast.
- Blessed with nearly four times as much in cash and investments.
- Producing near-equivalent returns on capital.
If that Microsoft was so dangerous that regulators had to act, what is this Apple? A robber baron? A potential bailout fund? A cult with cash? How about the heir apparent? The numbers speak for themselves. In the 1990s, Microsoft was the Greatest Company in the History of Tech. Today, it's Apple that deserves that title.
Do you agree? Disagree? Please let us know what you think about Apple's earnings report and place in history using the comments box below.
The Motley Fool recently introduced a free My Watchlist feature that allows users to stay ahead of the curve and receive up to date news on companies like Apple, or any of its competitors. To get up-to-date company news and analysis, add Apple and Microsoft to your watchlist today.