Comparing Xiaomi (OTCMKTS:XIACF) and Apple (NASDAQ:AAPL)

Apple (NASDAQ:AAPL) and Xiaomi (OTCMKTS:XIACF) are both technology companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, institutional ownership, risk, valuation, profitability and analyst recommendations.

Profitability

This table compares Apple and Xiaomi’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Apple	27.62%	135.46%	34.11%
Xiaomi	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current recommendations and price targets for Apple and Xiaomi, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Apple	4	12	22	1	2.51
Xiaomi	1	0	0	0	1.00

Apple presently has a consensus price target of $330.53, indicating a potential upside of 6.66%. Given Apple’s stronger consensus rating and higher probable upside, research analysts plainly believe Apple is more favorable than Xiaomi.

Insider and Institutional Ownership

67.7% of Apple shares are held by institutional investors. 0.1% of Apple shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Apple and Xiaomi”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Apple	$466.82 billion	9.69	$112.01 billion	$8.72	35.54
Xiaomi	N/A	N/A	N/A	N/A	N/A

Apple has higher revenue and earnings than Xiaomi.

Summary

Apple beats Xiaomi on 10 of the 10 factors compared between the two stocks.

About Apple

Apple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. The company offers iPhone, a line of smartphones; Mac, a line of personal computers; iPad, a line of multi-purpose tablets; and wearables, home, and accessories comprising AirPods, Apple TV, Apple Watch, Beats products, and HomePod. It also provides AppleCare support and cloud services; and operates various platforms, including the App Store that allow customers to discover and download applications and digital content, such as books, music, video, games, and podcasts. In addition, the company offers various services, such as Apple Arcade, a game subscription service; Apple Fitness+, a personalized fitness service; Apple Music, which offers users a curated listening experience with on-demand radio stations; Apple News+, a subscription news and magazine service; Apple TV+, which offers exclusive original content; Apple Card, a co-branded credit card; and Apple Pay, a cashless payment service, as well as licenses its intellectual property. The company serves consumers, and small and mid-sized businesses; and the education, enterprise, and government markets. It distributes third-party applications for its products through the App Store. The company also sells its products through its retail and online stores, and direct sales force; and third-party cellular network carriers, wholesalers, retailers, and resellers. Apple Inc. was founded in 1976 and is headquartered in Cupertino, California.

About Xiaomi

Xiaomi Corporation, an investment holding company, provides hardware and software services in Mainland China and internationally. It operates through Smartphones, IoT and Lifestyle Products, Internet Services, and Others segments. The Smartphones segment sells smartphones. The IoT and Lifestyle Products segment offers smart TVs, laptops, AI speakers, and smart routers; various IoT and other smart hardware products; and lifestyle products. The Internet Services segment provides advertising services and internet value-added services; and engages in the online game and fintech businesses. The Others segment offers hardware repair services for its products; installation services for certain IoT products; and sells materials and other products. The company engages in the wholesale and retail of smartphones and ecosystem partners' products; sale of smart hardware; development and sale of software, hardware, and television; procurement and sale of smartphones, ecosystem partners' products, and spare parts; procurement of raw materials; and operation of retail stores. It is also involved in the provision of advertising and promotion services; internet services; investment; commercial factoring activities; e-commerce business; sale of e-books; electronic payment technology services; technical services; and integrated circuit chip design services, as well as smart electric vehicle business. Xiaomi Corporation was incorporated in 2010 and is headquartered in Beijing, the People's Republic of China.