RIMM vs. AAPL; Another Economic Recovery Play

What’s the better economic-recovery play?

These companies were both major media darlings before the recession, posting strong revenue and earnings growth, and sporting sky-high PE multiples.  Yet with the recession, many stocks got CLOBBERED, and these companies are now both trading at a PE of around 22.  So the market is pricing these companies similarly; is the market right to do so, or is there hidden value in one of these companies?

Looking at their PE ratios of 22ish, there are two ways the companies can go up in value.  They can make more money, driving up the E side of the equation, or sentiment towards the company can improve, driving up the ratio itself.  Since sentiment is also based on earnings, earnings are definitely the most important variable here.  Read the rest of this entry »