Analyzing Apple In Comparison To Competitors In Technology Hardware, Storage & Peripherals Industry

In today's rapidly changing and highly competitive business world, it is imperative for investors and industry observers to carefully assess companies before making investment choices. In this article, we will undertake a comprehensive industry comparison, evaluating Apple (NASDAQ:AAPL) vis-à-vis its key competitors in the Technology Hardware, Storage & Peripherals industry. Through a detailed analysis of important financial indicators, market standing, and growth potential, our goal is to provide valuable insights and highlight 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	36.33	54.31	9.77	39.36%	$35.55	$48.34	7.94%
Western Digital Corp	26.44	10.90	6.74	20.57%	$1.48	$1.23	27.4%
Pure Storage Inc	181.61	16.24	6.78	4.03%	$0.1	$0.7	16.05%
NetApp Inc	18.55	21.39	3.28	31.11%	$0.47	$1.23	2.83%
Super Micro Computer Inc	24.38	2.83	0.93	2.62%	$0.25	$0.47	-15.49%
Logitech International SA	22.79	7.07	3.21	7.99%	$0.22	$0.51	6.27%
Diebold Nixdorf Inc	47.38	2.07	0.65	3.73%	$0.11	$0.25	1.95%
Turtle Beach Corp	15.75	2.45	0.85	1.51%	$0.01	$0.03	-14.74%
Average	48.13	8.99	3.21	10.22%	$0.38	$0.63	3.47%

By conducting a comprehensive analysis of Apple, the following trends become evident:

• The stock's Price to Earnings ratio of 36.33 is lower than the industry average by 0.75x, suggesting potential value in the eyes of market participants.

• It could be trading at a premium in relation to its book value, as indicated by its Price to Book ratio of 54.31 which exceeds the industry average by 6.04x.

• The Price to Sales ratio of 9.77, which is 3.04x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.

• 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 company exhibits higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $35.55 Billion, which is 93.55x above the industry average, implying stronger profitability and robust cash flow generation.

• Compared to its industry, the company has higher gross profit of $48.34 Billion, which indicates 76.73x above the industry average, indicating 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 3.47%.

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.

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

• Apple holds a middle position in terms of the debt-to-equity ratio compared to its top 4 peers.

• This indicates a balanced financial structure with a moderate level of debt and an appropriate reliance on equity financing with a debt-to-equity ratio of 1.34.

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 its industry sector. These metrics highlight Apple's strong financial performance and growth potential in the market.

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