Exploring The Competitive Space: Apple Versus Industry Peers In Technology Hardware, Storage & Peripherals

Amidst today's fast-paced and highly competitive business environment, it is crucial for investors and industry enthusiasts to conduct comprehensive company evaluations. In this article, we will delve into an extensive industry comparison, evaluating Apple (NASDAQ:AAPL) in comparison to its major competitors within the Technology Hardware, Storage & Peripherals industry. By analyzing critical 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 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	35.17	52.58	9.46	39.36%	$35.55	$48.34	7.94%
Western Digital Corp	30.90	12.74	7.88	20.57%	$1.48	$1.23	27.4%
Pure Storage Inc	181.66	16.25	6.78	4.03%	$0.1	$0.7	16.05%
NetApp Inc	18.57	21.42	3.29	31.11%	$0.47	$1.23	2.83%
Super Micro Computer Inc	24.05	2.79	0.92	2.62%	$0.25	$0.47	-15.49%
Logitech International SA	22.31	6.92	3.14	7.99%	$0.22	$0.51	6.27%
Diebold Nixdorf Inc	49.45	2.16	0.68	3.73%	$0.11	$0.25	1.95%
Turtle Beach Corp	15.09	2.34	0.82	1.51%	$0.01	$0.03	-14.74%
Average	48.86	9.23	3.36	10.22%	$0.38	$0.63	3.47%

After examining Apple, the following trends can be inferred:

• At 35.17, the stock's Price to Earnings ratio is 0.72x less than the industry average, suggesting favorable growth potential.

• With a Price to Book ratio of 52.58, which is 5.7x 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 9.46, surpassing the industry average by 2.82x, may indicate an aspect of overvaluation in terms of sales performance.

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

• The gross profit of $48.34 Billion is 76.73x above that of its industry, highlighting stronger profitability and higher earnings from its core operations.

• The company's revenue growth of 7.94% exceeds the industry average of 3.47%, indicating strong sales performance and market outperformance.

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.

By analyzing Apple in relation to its top 4 peers based on the Debt-to-Equity ratio, the following insights can be derived:

• Among its top 4 peers, Apple is placed in the middle with a moderate debt-to-equity ratio of 1.34.

• This implies a balanced financial structure, with a reasonable proportion of debt and equity.

Key Takeaways

For Apple in the Technology Hardware, Storage & Peripherals industry, the PE, PB, and PS ratios indicate that the stock is relatively undervalued compared to its peers. However, the high ROE, EBITDA, gross profit, and revenue growth suggest that Apple is performing exceptionally well within the industry. These metrics highlight Apple's strong financial performance and growth potential compared to its competitors.

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