Dell Technologies vs. Apple: Which PC Maker Stock is a Better Buy?

Core Viewpoint - The personal computer (PC) market is projected to grow by 4.1% year-over-year in 2025, with global shipments expected to reach 274 million units, driven by demand for AI-powered PCs and the transition to Microsoft Windows 11, although U.S. tariffs and macroeconomic challenges may negatively impact shipments in the latter half of 2025 [1] Dell Technologies - Dell Technologies is experiencing strong demand for commercial PCs, with Client Solutions Group (CSG) revenues reaching $12.5 billion in Q1 fiscal 2026, a 5% increase year-over-year, and commercial client revenues rising 9% to $11.04 billion [2][5] - The company has a broad portfolio of AI-capable PCs, including new Dell Pro Max notebooks and desktops equipped with advanced processors and GPUs, and is collaborating with partners like Meta Platforms and Microsoft [3] - Despite commercial growth, Dell's consumer business is struggling, with revenues declining 19% due to competition from Lenovo and HP, resulting in a market share drop to 9.8% [4] - Dell's second-quarter shipment grew 3% year-over-year to 9.8 million units, but it still lagged behind HP and Lenovo [4] - The Zacks Consensus Estimate for Dell's fiscal 2026 earnings is $9.47 per share, indicating a 16.3% increase over fiscal 2025 [11] Apple - Apple's Mac business is benefiting from strong demand for its M4 chip series, with new products like the MacBook Air and Mac Studio enhancing its portfolio [6] - Apple's Mac shipments increased by 21.4% year-over-year, raising its market share to 9.1% [9] - The Zacks Consensus Estimate for Apple's fourth-quarter fiscal 2025 Mac revenues is $8.05 billion, reflecting a 14.8% growth compared to the previous year [10] - The consensus for Apple's fiscal 2025 earnings has risen by 3.1% to $7.33 per share, suggesting an 8.6% growth over fiscal 2024 [12] Stock Performance and Valuation - Dell Technologies shares have returned 11% year-to-date, outperforming Apple's decline of 10.1% [13] - Dell shares are considered cheaper, with a Price/Sales ratio of 0.8X compared to Apple's 7.84X, indicating a more favorable valuation for Dell [16] - Dell Technologies holds a Zacks Rank 2 (Buy), while Apple has a Zacks Rank 3 (Hold), suggesting that Dell is currently a better investment option [20]