In the ever-changing and fiercely competitive business landscape, conducting thorough company analysis is crucial for investors and industry experts. In this article, we will undertake a comprehensive industry comparison, evaluating Apple (NASDAQ:AAPL) and its primary competitors in the Technology Hardware, Storage & Peripherals industry. By closely examining key financial metrics, market position, and growth prospects, our aim is 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 accounts for the majority of the firm's sales, and Apple's other products, such as the 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, such as streaming video, subscription bundles, and augmented reality. The firm designs its own software and semiconductors and works with subcontractors such as Foxconn and TSMC to build its products and chips. Slightly less than half of Apple's sales come directly through its flagship stores, with the majority 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 35.55 42.08 9.81 27.84% $39.02 $54.77 16.36%
SanDisk Corp 22.04 15.13 12.45 46.78% $7.89 $7.58 371.59%
Seagate Technology Holdings PLC 65.01 94.52 16.97 79.34% $1.64 $1.9 48.49%
Western Digital Corp 18.43 20.18 14.71 34.3% $3.36 $2.03 43.84%
Hewlett Packard Enterprise Co 52.05 2.92 1.93 2.38% $1.7 $3.9 40.0%
NetApp Inc 32.24 29.73 5.94 32.2% $0.59 $1.36 12.47%
Everpure Inc 177.36 26.98 10.32 1.67% $0.07 $0.72 35.25%
Super Micro Computer Inc 11.48 2.36 0.67 13.07% $0.7 $1.02 8.56%
Logitech International SA 18.03 5.98 2.94 10.33% $0.28 $0.61 6.93%
Diebold Nixdorf Inc 22.71 2.40 0.64 1.56% $0.09 $0.24 1.7%
Corsair Gaming Inc 38.52 1.94 0.88 1.04% $0.02 $0.1 -1.8%
Immersion Corp 53.79 0.84 0.14 1.26% $0.02 $1.36 -5.22%
Average 46.51 18.45 6.14 20.36% $1.49 $1.89 51.07%

When closely examining Apple, the following trends emerge:

  • At 35.55, the stock's Price to Earnings ratio is 0.76x less than the industry average, suggesting favorable growth potential.

  • With a Price to Book ratio of 42.08, which is 2.28x 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.

  • With a relatively high Price to Sales ratio of 9.81, which is 1.6x the industry average, the stock might be considered overvalued based on sales performance.

  • With a Return on Equity (ROE) of 27.84% that is 7.48% above the industry average, it appears that the company exhibits efficient use of equity to generate profits.

  • With higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $39.02 Billion, which is 26.19x above the industry average, the company demonstrates stronger profitability and robust cash flow generation.

  • The company has higher gross profit of $54.77 Billion, which indicates 28.98x above the industry average, indicating stronger profitability and higher earnings from its core operations.

  • With a revenue growth of 16.36%, which is much lower than the industry average of 51.07%, the company is experiencing a notable slowdown in sales expansion.

Debt To Equity Ratio

debt to equity

The debt-to-equity (D/E) ratio assesses the extent to which a company relies on borrowed funds compared 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.

When examining Apple in comparison to its top 4 peers with respect to the Debt-to-Equity ratio, the following information becomes apparent:

  • Apple has a stronger financial position compared to its top 4 peers, as evidenced by its lower debt-to-equity ratio of 0.78.

  • This suggests that the company has a more favorable balance between debt and equity, which can be perceived as a positive indicator by investors.

Key Takeaways

For Apple in the Technology Hardware, Storage & Peripherals industry, the PE ratio is low compared to peers, indicating potential undervaluation. The PB and PS ratios are high, suggesting overvaluation relative to industry standards. In terms of ROE, EBITDA, gross profit, and revenue growth, Apple demonstrates strong performance compared to its industry peers, reflecting favorable financial health and operational efficiency.

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