Assessing Apple's Performance Against Competitors In Technology Hardware, Storage & Peripherals Industry

In today's rapidly evolving and fiercely competitive business landscape, it is crucial for investors and industry analysts to conduct comprehensive company evaluations. In this article, we will undertake an in-depth industry comparison, assessing Apple (NASDAQ:AAPL) alongside its primary competitors in the Technology Hardware, Storage & Peripherals industry. By meticulously examining crucial financial indicators, market positioning, and growth potential, we aim to provide valuable insights to 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 makes up a majority of the firm sales, and Apple's other products like 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, like streaming video, subscription bundles, and augmented reality. The firm designs its own software and semiconductors while working with subcontractors like Foxconn and TSMC to build its products and chips. Slightly less than half of Apple's sales come directly through its flagship stores, with a majority of sales 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	37.25	55.69	10.02	39.36%	$35.55	$48.34	7.94%
Western Digital Corp	23.91	9.86	6.10	20.57%	$1.48	$1.23	27.4%
Pure Storage Inc	186.95	16.64	6.98	4.03%	$0.09	$0.6	12.02%
NetApp Inc	20.48	23.61	3.62	31.11%	$0.47	$1.23	2.83%
Super Micro Computer Inc	27.85	3.24	1.07	2.62%	$0.25	$0.47	-15.49%
Logitech International SA	27.07	8.40	3.81	7.99%	$0.22	$0.51	6.27%
Diebold Nixdorf Inc	48.43	2.12	0.66	3.73%	$0.11	$0.25	1.95%
Turtle Beach Corp	16.19	2.51	0.88	1.51%	$0.01	$0.03	-14.74%
Average	50.13	9.48	3.3	10.22%	$0.38	$0.62	2.89%

Through an analysis of Apple, we can infer the following trends:

• The stock's Price to Earnings ratio of 37.25 is lower than the industry average by 0.74x, suggesting potential value in the eyes of market participants.

• The elevated Price to Book ratio of 55.69 relative to the industry average by 5.87x suggests company might be overvalued based on its book value.

• The Price to Sales ratio of 10.02, which is 3.04x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.

• With a Return on Equity (ROE) of 39.36% that is 29.14% 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 $35.55 Billion, which is 93.55x above the industry average, the company demonstrates stronger profitability and robust cash flow generation.

• With higher gross profit of $48.34 Billion, which indicates 77.97x above the industry average, the company demonstrates stronger profitability and higher earnings from its core operations.

• The company is experiencing remarkable revenue growth, with a rate of 7.94%, outperforming the industry average of 2.89%.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio is an important measure to assess the financial structure and risk profile of a company.

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:

• Apple is positioned in the middle in terms of the debt-to-equity ratio compared to its top 4 peers.

• This suggests a balanced financial structure, where the company maintains a moderate level of debt while also relying on equity financing with a debt-to-equity ratio of 1.34.

Key Takeaways

For Apple, the PE ratio is low compared to peers, indicating potential undervaluation. The high PB and PS ratios suggest the market values the company's assets and sales highly. In terms of ROE, EBITDA, gross profit, and revenue growth, Apple outperforms its industry peers, reflecting strong financial performance and growth potential.

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