In the dynamic and cutthroat world of business, conducting thorough company analysis is essential 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 36.33 43 10.03 27.84% $39.02 $54.77 16.36%
SanDisk Corp 21.27 14.60 12.01 46.78% $7.89 $7.58 371.59%
Seagate Technology Holdings PLC 59.90 87.08 15.63 79.34% $1.64 $1.9 48.49%
Western Digital Corp 17.17 18.80 13.70 34.3% $3.36 $2.03 43.84%
Hewlett Packard Enterprise Co 49.65 2.78 1.84 2.38% $1.7 $3.9 40.0%
NetApp Inc 30.63 28.25 5.64 32.2% $0.59 $1.36 12.47%
Everpure Inc 169.70 25.82 9.88 1.67% $0.07 $0.72 35.25%
Super Micro Computer Inc 11.22 2.31 0.65 13.07% $0.7 $1.02 8.56%
Logitech International SA 18.43 6.12 3.01 10.33% $0.28 $0.61 6.93%
Diebold Nixdorf Inc 22.32 2.36 0.63 1.56% $0.09 $0.24 1.7%
Corsair Gaming Inc 36.61 1.85 0.84 1.04% $0.02 $0.1 -1.8%
Immersion Corp 54.29 0.85 0.15 1.26% $0.02 $1.36 -5.22%
Average 44.65 17.35 5.82 20.36% $1.49 $1.89 51.07%

Upon closer analysis of Apple, the following trends become apparent:

  • The Price to Earnings ratio of 36.33 is 0.81x lower than the industry average, indicating potential undervaluation for the stock.

  • With a Price to Book ratio of 43.0, which is 2.48x 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 10.03, which is 1.72x 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 27.84%, which is 7.48% above the industry average. This suggests efficient use of equity to generate profits and demonstrates profitability and growth potential.

  • 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.

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

  • The company's revenue growth of 16.36% is significantly below the industry average of 51.07%. This suggests a potential struggle in generating increased sales volume.

Debt To Equity Ratio

debt to equity

The debt-to-equity (D/E) ratio is a key indicator of a company's financial health and its reliance on debt financing.

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.

In light of the Debt-to-Equity ratio, a comparison between Apple and its top 4 peers reveals the following information:

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

  • This implies that the company relies less on debt financing and has a more favorable balance between debt and equity.

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 that the market values the company's assets and sales highly. In terms of ROE, EBITDA, and gross profit, Apple demonstrates strong performance compared to industry peers, reflecting efficient operations and profitability. However, the low revenue growth rate may indicate challenges in expanding market share compared to competitors.

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