Despite the stock market’s recent volatility on fears related to the spread of the COVID-19 Delta variant and concerns over rising inflation, we think it could be wise to invest in quality mega-cap stocks because they are expected to generate steady returns over the long run. Apple (AAPL) and Amazon (AMZN) are examples of this class of stock and should generate stable returns, dodging short-term market fluctuations. But which of these two stocks is a better buy now? Read more to find out.
Tech giant Apple Inc. (AAPL), which is known for its innovative products, such as the iPhone, crossed the $2 trillion market cap level in August last year. It has a market capitalization of $2.44 trillion currently. In comparison, with a market cap of $1.80 trillion, e-commerce giant Amazon.com, Inc. (AMZN) has been making significant advances in the cloud space via Amazon Web Services (AWS) and in the entertainment space through its Amazon Prime offerings, among others.
Both AAPL and AMZN have a B grade for Quality. This is justified given AAPL's 103.40% ROCE, which is 1,407.3% higher than the 6.86% industry average. AMZN's 31.91% ROCE is 162.6% higher than the 12.15% industry average.
Of the 45 stocks in the B-rated Technology - Hardware industry, AAPL is ranked #23. However, AMZN is ranked #15 of 74 stocks in the F-rated Internet industry.
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