In today's fast-paced and competitive business landscape, it is essential for investors and industry enthusiasts to thoroughly analyze companies before making investment decisions. In this article, we will conduct a comprehensive industry comparison, evaluating Apple (NASDAQ:AAPL) against its key competitors in the Technology Hardware, Storage & Peripherals industry. By examining key 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 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 38.12 45.12 10.52 27.84% $39.02 $54.77 16.36%
SanDisk Corp 20.61 14.14 11.64 46.78% $7.89 $7.58 371.59%
Seagate Technology Holdings PLC 56.34 82.18 14.71 79.34% $1.64 $1.9 48.49%
Western Digital Corp 15.49 16.96 12.36 34.3% $3.36 $2.03 43.84%
Hewlett Packard Enterprise Co 29.22 2.84 1.91 5.83% $2.33 $4.9 33.68%
NetApp Inc 27.05 25.16 5.19 26.35% $0.55 $1.42 29.89%
Everpure Inc 133.71 21.11 7.94 4.97% $0.11 $0.81 37.73%
Super Micro Computer Inc 11.30 2.36 0.66 12.83% $1.57 $1.94 93.16%
Logitech International SA 18.26 6.06 2.98 10.33% $0.28 $0.61 6.93%
Diebold Nixdorf Inc 21.49 2.27 0.61 1.56% $0.09 $0.24 1.7%
Corsair Gaming Inc 42.48 2.14 0.98 1.04% $0.02 $0.1 -1.8%
Immersion Corp 20.91 0.79 0.14 1.93% $0.01 $0.06 0.81%
Average 36.08 16.0 5.37 20.48% $1.62 $1.96 60.55%

Upon analyzing Apple, the following trends can be observed:

  • The current Price to Earnings ratio of 38.12 is 1.06x higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.

  • The elevated Price to Book ratio of 45.12 relative to the industry average by 2.82x suggests company might be overvalued based on its book value.

  • The stock's relatively high Price to Sales ratio of 10.52, surpassing the industry average by 1.96x, may indicate an aspect of overvaluation in terms of sales performance.

  • The company has a higher Return on Equity (ROE) of 27.84%, which is 7.36% above the industry average. This suggests efficient use of equity to generate profits and demonstrates profitability and growth potential.

  • The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $39.02 Billion is 24.09x above the industry average, highlighting stronger profitability and robust cash flow generation.

  • With higher gross profit of $54.77 Billion, which indicates 27.94x 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 60.55%. This suggests a potential struggle in generating increased sales volume.

Debt To Equity Ratio

debt to equity

The debt-to-equity (D/E) ratio indicates the proportion of debt and equity used by a company to finance its assets and operations.

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 terms of the Debt-to-Equity ratio, Apple can be assessed by comparing it to its top 4 peers, resulting in the following observations:

  • 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, the PE, PB, and PS ratios are all high compared to its peers in the Technology Hardware, Storage & Peripherals industry, indicating potentially overvalued stock. On the other hand, Apple's high ROE, EBITDA, gross profit, and low revenue growth suggest strong operational efficiency and profitability relative to industry competitors. These contrasting metrics may reflect market expectations versus the company's financial performance.

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