In today's rapidly changing and fiercely competitive business landscape, it is vital for investors and industry enthusiasts to carefully evaluate companies. In this article, we will perform a comprehensive industry comparison, evaluating Apple (NASDAQ:AAPL) against its key competitors in the Technology Hardware, Storage & Peripherals industry. By analyzing important financial metrics, market position, and growth prospects, we aim to provide valuable insights for investors and shed light on company's performance within the industry.

Apple Background

Apple is among the largest companies in the world, with a broad portfolio of hardware and software products targeted at consumers and businesses. Apple's iPhone makes up a majority of the firm sales, and Apple's other products like Mac, iPad, and Watch are designed around the iPhone as the focal point of an expansive software ecosystem. Apple has progressively worked to add new applications, like streaming video, subscription bundles, and augmented reality. The firm designs its own software and semiconductors while working with subcontractors like Foxconn and TSMC to build its products and chips. Slightly less than half of Apple's sales come directly through its flagship stores, with a majority of sales coming indirectly through partnerships and distribution.

Company P/E P/B P/S ROE EBITDA (in billions) Gross Profit (in billions) Revenue Growth
Apple Inc 32.77 43.09 8.87 52.0% $54.07 $69.23 15.65%
Western Digital Corp 28.75 14.50 10.47 27.66% $2.11 $1.38 25.24%
Seagate Technology Holdings PLC 51.22 221.24 10.01 299.49% $0.85 $1.18 21.51%
Everpure Inc 111.22 13.98 5.73 7.04% $0.15 $0.74 20.35%
NetApp Inc 16.93 17.19 3.05 31.16% $0.51 $1.21 4.39%
Logitech International SA 19.39 5.80 2.89 11.36% $0.31 $0.61 6.06%
Super Micro Computer Inc 16.09 1.89 0.51 5.93% $0.55 $0.8 123.36%
Diebold Nixdorf Inc 30.70 2.47 0.76 4.49% $0.11 $0.28 11.66%
Turtle Beach Corp 13.38 1.57 0.66 14.73% $0.02 $0.05 -18.69%
Average 35.96 34.83 4.26 50.23% $0.58 $0.78 24.23%

When closely examining Apple, the following trends emerge:

  • The stock's Price to Earnings ratio of 32.77 is lower than the industry average by 0.91x, suggesting potential value in the eyes of market participants.

  • With a Price to Book ratio of 43.09, which is 1.24x the industry average, Apple might be considered overvalued in terms of its book value, as it is trading at a higher multiple compared to its industry peers.

  • The Price to Sales ratio of 8.87, which is 2.08x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.

  • The company has a higher Return on Equity (ROE) of 52.0%, which is 1.77% above the industry average. This suggests efficient use of equity to generate profits and demonstrates profitability and growth potential.

  • The company exhibits higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $54.07 Billion, which is 93.22x above the industry average, implying stronger profitability and robust cash flow generation.

  • The company has higher gross profit of $69.23 Billion, which indicates 88.76x above the industry average, indicating stronger profitability and higher earnings from its core operations.

  • The company's revenue growth of 15.65% is significantly below the industry average of 24.23%. This suggests a potential struggle in generating increased sales volume.

Debt To Equity Ratio

debt to equity

The debt-to-equity (D/E) ratio measures the financial leverage of a company by evaluating its debt relative to its equity.

Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.

By considering the Debt-to-Equity ratio, Apple can be compared to its top 4 peers, leading to the following observations:

  • In terms of the debt-to-equity ratio, Apple is positioned in the middle among its top 4 peers.

  • This suggests a relatively balanced financial structure, where the company maintains a moderate level of debt while also utilizing equity financing with a debt-to-equity ratio of 1.03.

Key Takeaways

For Apple in the Technology Hardware, Storage & Peripherals industry, the PE ratio is low compared to peers, indicating potential undervaluation. The high PB and PS ratios suggest a premium valuation based on book value and sales. In terms of profitability, Apple shows high ROE, EBITDA, and gross profit margins, outperforming industry peers. However, the low revenue growth rate may raise concerns about future performance relative to competitors.

This article was generated by Benzinga's automated content engine and reviewed by an editor.