Better Buy: Apple Inc. vs. Microsoft

Apple (NASDAQ: AAPL) versus Microsoft (NASDAQ: MSFT). These archrivals have battled against each other for decades, all the while rewarding their shareholders with the spoils of war.

But which is the better buy today? Let's find out.

Apple's economic moat is built around the strength of its ecosystem. The iPhone is its Trojan horse into consumer's lives. The high satisfaction rates among iPhone buyers tend to lead to additional Apple purchases, such as iPads and Macs. This "halo effect" is further strengthened by Apple's growing collection of services, with iCloud, iTunes, App Store, Apple Pay, and Apple Music all helping to add additional layers of "stickiness" to Apple's ecosystem. So once a person becomes an Apple customer, he or she tends to remain one.

Source: Fool.com