Comparing Apple With Industry Competitors In Technology Hardware, Storage & Peripherals Industry

In today's rapidly changing and highly competitive business world, it is vital for investors and industry enthusiasts to carefully assess 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	39.33	46.55	10.86	27.84%	$39.02	$54.77	16.36%
SanDisk Corp	18.59	12.59	10.50	46.78%	$7.89	$7.58	371.59%
Seagate Technology Holdings PLC	47.54	69.34	12.41	79.34%	$1.64	$1.9	48.49%
Western Digital Corp	13.08	14.87	10.44	34.3%	$3.36	$2.03	43.84%
Hewlett Packard Enterprise Co	28.80	2.80	1.89	5.83%	$2.33	$4.9	33.68%
Everpure Inc	174.10	27.48	10.34	4.97%	$0.11	$0.81	37.73%
NetApp Inc	29.29	27.25	5.62	26.35%	$0.55	$1.42	29.89%
Super Micro Computer Inc	9.85	2.06	0.57	12.83%	$1.57	$1.94	93.16%
Logitech International SA	19.70	6.54	3.21	10.33%	$0.28	$0.61	6.93%
Diebold Nixdorf Inc	22.37	2.37	0.63	1.56%	$0.09	$0.24	1.7%
Corsair Gaming Inc	42.19	2.13	0.97	1.04%	$0.02	$0.1	-1.8%
Immersion Corp	20.82	0.79	0.14	1.93%	$0.01	$0.06	0.81%
Average	38.76	15.29	5.16	20.48%	$1.62	$1.96	60.55%

Through a meticulous analysis of Apple, we can observe the following trends:

• The current Price to Earnings ratio of 39.33 is 1.01x higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.

• With a Price to Book ratio of 46.55, which is 3.04x 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 10.86, which is 2.1x the industry average, the stock might be considered overvalued based on sales performance.

• The Return on Equity (ROE) of 27.84% is 7.36% above the industry average, highlighting efficient use of equity to generate profits.

• Compared to its industry, the company has higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $39.02 Billion, which is 24.09x above the industry average, indicating stronger profitability and robust cash flow generation.

• The company has higher gross profit of $54.77 Billion, which indicates 27.94x above the industry average, indicating 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 60.55%. This indicates a potential fall in the company's sales performance.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio is a measure that indicates the level of debt a company has taken on relative to the value of its assets net of liabilities.

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 evaluating Apple alongside its top 4 peers in terms of the Debt-to-Equity ratio, the following insights arise:

• Among its top 4 peers, Apple has a stronger financial position with a lower debt-to-equity ratio of 0.78.

• This indicates that the company relies less on debt financing and maintains a more favorable balance between debt and equity, which can be viewed positively by investors.

Key Takeaways

For Apple in the Technology Hardware, Storage & Peripherals industry, the PE, PB, and PS ratios are all high compared to its peers, indicating that the stock may be overvalued. On the other hand, Apple's high ROE, EBITDA, gross profit, and low revenue growth suggest strong profitability and operational efficiency relative to industry competitors.

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