Which company is the less financially risky company, APPLE or MICROSOFT? (give as many arguments as possible)?

Answer 1

I would have to say that apple is probaby the safer bet. Lately they have taken an innovative approach to thier products and are slowly expanding thier stores in the market. All indications are go with apple. Generally apple has been the underdog in computing. But again the switch to intel has put them on a closer par with windows systems and software. Reliability of product has always been high.
Microsoft has become a mega giant for software and operatin g systems. Biggest problem is microsofts very vulnerable windows operating sytems. At times leaves consumers with a lot of money spent and nothing gained. But that is just the bad side. They also have some very good products on the market. As of late the xbox 360 has done very well and is brining quite a profit for them while the rival sony is losing market shares fast.
Microsoft is also very vulnerable to antitrust suits. Not a good thing to have hanging over you. Also as of late they have delved into arenas that were best left to the competitors. I.E. the zune.
Microsoft is to wide open for a major downfall with failing products, pending lawsuits, and loss of supporting companies, and unhappy consumers.
While apple has stayed within the arena they known and attempted only to capitalize on what the do best. Thier growth rate for there company has been very well and has turned quite a sizable profit. 14% market share increase.
So I would say apple is the better bet

Answer 2

According to Yahoo! Finance:
Apple Computers (AAPL) has a beta of 2.05
Microsoft Corp (MSFT) has a beta of 0.79

So by CAPM theory, Microsoft is less financially risky as it has less market risk (from the lower beta).

Answer 3

APPLE
Expensive Computers