In the fast-paced 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) in comparison to its major competitors within the Technology Hardware, Storage & Peripherals industry. By analyzing crucial financial metrics, market position, and growth potential, our objective is to provide valuable insights for investors and offer a deeper understanding of company's performance in 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 35.43 42.20 9.78 27.84% $39.02 $54.77 16.36%
Seagate Technology Holdings PLC 61.59 89.68 16.08 79.34% $1.0 $1.45 16.61%
Western Digital Corp 32.61 19.40 17.41 37.73% $3.49 $1.68 45.47%
SanDisk Corp 41.52 13.06 13.98 30.14% $4.15 $4.66 251.03%
Hewlett Packard Enterprise Co 44.77 2.51 1.66 2.38% $1.7 $3.9 40.0%
NetApp Inc 28.11 25.93 5.18 32.2% $0.59 $1.36 12.47%
Everpure Inc 116.92 17.79 6.81 1.67% $0.07 $0.72 35.25%
Super Micro Computer Inc 14.95 2.43 0.56 6.64% $0.7 $1.02 122.68%
Logitech International SA 18.80 6.24 3.07 10.33% $0.28 $0.61 6.93%
IonQ Inc 93.44 2.73 61.53 17.93% $-0.23 $0.02 754.72%
Diebold Nixdorf Inc 24.37 2.58 0.69 1.56% $0.09 $0.24 1.7%
Corsair Gaming Inc 117.89 1.75 0.78 1.85% $0.03 $0.12 -4.12%
Immersion Corp 54 0.84 0.14 1.26% $0.02 $1.36 -5.22%
Turtle Beach Corp 612.50 2.17 0.83 -12.65% $-0.01 $0.01 -34.0%
Average 97.04 14.39 9.9 16.18% $0.91 $1.32 95.66%

By closely examining Apple, we can identify the following trends:

  • A Price to Earnings ratio of 35.43 significantly below the industry average by 0.37x suggests undervaluation. This can make the stock appealing for those seeking growth.

  • With a Price to Book ratio of 42.2, which is 2.93x 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 is 9.78, which is 0.99x the industry average. This suggests a possible undervaluation based on sales performance.

  • With a Return on Equity (ROE) of 27.84% that is 11.66% 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 42.88x above the industry average, the company demonstrates stronger profitability and robust cash flow generation.

  • The gross profit of $54.77 Billion is 41.49x above that of its industry, highlighting 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 95.66%, the company is experiencing a notable slowdown in sales expansion.

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.

When assessing Apple against its top 4 peers using the Debt-to-Equity ratio, the following comparisons can be made:

  • 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 ratio suggests the market values Apple's assets highly. With a low PS ratio, Apple's sales are relatively inexpensive. Apple's high ROE, EBITDA, and gross profit reflect strong profitability. However, the low revenue growth may raise concerns about future performance compared to industry peers.

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