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 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 38.19 45.20 10.54 27.84% $39.02 $54.77 16.36%
SanDisk Corp 23.59 16.19 13.32 46.78% $7.89 $7.58 371.59%
Seagate Technology Holdings PLC 66.35 96.79 17.32 79.34% $1.64 $1.9 48.49%
Western Digital Corp 16.88 18.49 13.47 34.3% $3.36 $2.03 43.84%
Hewlett Packard Enterprise Co 32.93 3.20 2.16 5.83% $2.33 $4.9 33.68%
Everpure Inc 179.15 28.28 10.64 4.97% $0.11 $0.81 37.73%
NetApp Inc 29.67 27.60 5.69 26.35% $0.55 $1.42 29.89%
Super Micro Computer Inc 12.60 2.63 0.73 12.83% $1.57 $1.94 93.16%
Logitech International SA 18.53 6.15 3.02 10.33% $0.28 $0.61 6.93%
Diebold Nixdorf Inc 20.27 2.14 0.57 1.56% $0.09 $0.24 1.7%
Corsair Gaming Inc 43.55 2.20 1 1.04% $0.02 $0.1 -1.8%
Average 44.35 20.37 6.79 22.33% $1.78 $2.15 66.52%

Through a thorough examination of Apple, we can discern the following trends:

  • At 38.19, the stock's Price to Earnings ratio is 0.86x less than the industry average, suggesting favorable growth potential.

  • With a Price to Book ratio of 45.2, which is 2.22x 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 stock's relatively high Price to Sales ratio of 10.54, surpassing the industry average by 1.55x, may indicate an aspect of overvaluation in terms of sales performance.

  • With a Return on Equity (ROE) of 27.84% that is 5.51% above the industry average, it appears that the company exhibits efficient use of equity to generate profits.

  • The company exhibits higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $39.02 Billion, which is 21.92x above the industry average, implying stronger profitability and robust cash flow generation.

  • With higher gross profit of $54.77 Billion, which indicates 25.47x 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 lower compared to the industry average of 66.52%. This indicates a potential fall in the company's sales performance.

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.

When comparing Apple with its top 4 peers based on the Debt-to-Equity ratio, the following insights can be observed:

  • When comparing the debt-to-equity ratio, Apple is in a stronger financial position compared to its top 4 peers.

  • The company has a lower level of debt relative to its equity, indicating a more favorable balance between the two with a lower debt-to-equity ratio of 0.78.

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 ROE, EBITDA, and gross profit, Apple demonstrates strong performance relative to industry peers. However, the low revenue growth rate may raise concerns about future prospects compared to competitors.

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