How Big Is Apple, Really?

You've heard all about how Apple (Nasdaq: AAPL) is closing in on ExxonMobil (NYSE: XOM) to perhaps become America's largest business.

But that's only if you count by market cap. You should know that plenty of companies are still much bigger than Apple if you look at pretty much any other metric. Consider:

Source: Capital IQ, a division of Standard & Poor's. LTM = last twelve months.

As you can see, Apple is merely large on more fundamental measures, not the lumbering giant that its market cap would indicate. I'm not judging anyone here; I'm simply measuring "largeness" from various angles.

All of the companies above and more (14 American businesses in total) outrank Apple in terms of trailing revenue and number of employees. You could argue that making this much money with so few workers is a good thing, because high income per employee is a measure of efficient operations. On the flipside, enormous employers such as Wal-Mart, JPMorgan Chase, and Berkshire Hathaway's sprawling conglomerate clearly make a larger impact on the economy as they provide jobs by the bushel.

Does it shock you to see archrival Microsoft generating 54% more income than Apple on merely 9.5% higher sales? It shouldn't, since Mr. Softy is in the high-margin software business while Apple deals with messy and expensive hardware.

Overall, what might be the most impressive part of the Apple story is the shoestring resources it's used to accomplish its success. Apple's R&D budget is about one-fifth that of Microsoft, yet Apple has created a mobile operating system that was years ahead of the competition. The company has succeeded thanks to a laser-like focus and a vision that has resonated with consumers. Going forward, don't be surprised if you see other companies copying the vertical integration Apple is moving toward by designing its own processors.

Does Apple really deserve the second-largest market cap on this list despite lagging in other columns? Discuss in the comments box below.