The tech hardware industry can be a brutal one for all but a few top businesses. Factors like quickly shifting consumer preferences, a host of price-based rivals, and the constant pressure to innovate make life hard for companies operating in this arena.

It's worth watching companies like Apple (AAPL -0.08%) and Garmin (GRMN 0.92%), then, which have demonstrated over the years that they can generate above-average profits in this tough selling environment. Let's take a closer look at these two successful companies to see which might be the better fit for your portfolio right now.

Buy Apple for the safety

Safety isn't a big factor in the investment theses of many tech stocks, but Apple is a notable exception. Among the attributes that make it a safe investment are its massive global sales base. Apple generates nearly $400 billion of annual revenue compared to Garmin's $5 billion. The tech leader also holds enough cash on its books to see it through a prolonged industry downturn, in contrast with all its smaller peers. Its growing services segment adds to the diversification benefits of owning this business.

Safety shows up in more qualitative areas, too, like Apple's famously valuable brand and stellar customer loyalty. These factors can't be quantified on its balance sheet, but they translate directly into more sales stability and higher earnings over the long term. Just compare Apple's 30% operating margin to Garmin's 20%.

Buy Garmin for the potential

Garmin will appeal to investors seeking a tech specialist that's earlier on in its growth story. Sales jumped 12% in the most recent quarter as it made gains across most of its diversified portfolio. Garmin in Q3 sold far more fitness trackers, year-over-year, and both its aviation GPS segment and its smartwatch division gained ground. It's encouraging for shareholders to see global sales rising steadily, as they have for most of the past decade, despite occasional slumps in one or two of its bigger divisions.

Garmin's 20% profit margin is also indicative of a valuable brand and an efficient selling approach. Investors will want to watch this metric going forward, though, as it has slipped from considerably from the levels above 25% that it enjoyed early in the pandemic. A rebound is likely now that inflation has eased and sales growth rates are accelerating. Yet stock returns could disappoint if a recovery doesn't take place.

Cash returns and price

Cash returns to shareholders and stock valuations are the two final pieces worth watching if you're considering buying Apple or Garmin. The cash return title easily goes to Apple, which pours a flood of funds into stock buybacks and its steadily rising dividend.

Sure, Garmin's yield is higher. But Apple stock is more likely to be a major source of income growth in your portfolio due to the company's higher cash flow and management's priority of returning cash to shareholders.

The good news is you can buy Garmin stock at a relative steal right now. Shares are priced at 5 times sales and 23 times earnings compared to Apple's ratios of 8 and 30, respectively. Most growth stock investors will still prefer Apple stock due to its formidable finances and its clear sales expansion path as it builds on its massive installed base of users. Apple offers a great mix of growth, income, and safety that's just not available from any other company in the tech hardware industry.