Samsung offers better value for investors than rival Apple, according to Didier Duret, chief global investment officer at ABM AMRO Private Banking.
Speaking on CNBC’S “Worldwide Exchange,” Duret said that investors should focus on cash-rich private companies, like Samsung that follow “megatrends,” such as the energy revolution, infrastructure, or better access to the consumer.
“Samsung, we like it because it’s at the crossroads of the consumer in general. I think that they are a broad span of products,” he said. “The valuation is also very attractive.”
Duret wasn’t alone. Mark Newman, senior analyst for global memory and consumer electronics at Sanford C Bernstein, echoed his views.
“They’re spreading their risks more widely and they’re also generating a lot of profit from other businesses,” Newman said. “The risk is much less for Samsung, rather than Apple, which has got all of its eggs pretty much on one operating system — iOS — and pretty much on one product — the iPhone.”
Newman added that although Samsung is a bigger company on a revenue and asset basis, Apple has much higher margins and is generating more profit.
“Samsung has a strong window of opportunity right now with the Samsung S3 coming out,” he said. “Apple doesn’t have a real high-end product right now. We’re waiting for the iPhone 5, which is rumored to be coming out in October. So that gives Samsung several months window to really sell a lot of Galaxy S3s.”
Newman also believes that the new MicrosoftWindows 8 tablets, with Office as the potential “killer app,” may help Samsung to take more market share away from Apple.
— By Matthew Clinch, Special to CNBC.com
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Neither Didier Duret nor Mark Newman own Apple or Samsung stock.