Comparative Study: Apple And Industry Competitors In Technology Hardware, Storage & Peripherals Industry

Apple Inc. +0.02%

Apple Inc.

AAPL

189.87

+0.02%

In today's rapidly changing and fiercely competitive business landscape, it is essential for investors and industry enthusiasts to thoroughly analyze companies. In this article, we will conduct a comprehensive industry comparison, evaluating Apple (NASDAQ:AAPL) against its key competitors in the Technology Hardware, Storage & Peripherals industry. By examining key 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 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 31.29 47.71 7.91 37.5% $30.65 $40.43 -0.72%
Super Micro Computer Inc 38.78 9 3.06 7.59% $0.19 $0.35 14.45%
Hewlett Packard Enterprise Co 10.26 0.97 0.71 3.07% $1.23 $2.56 -6.61%
NetApp Inc 27.31 23.68 3.13 28.36% $0.39 $1.11 -6.07%
Pure Storage Inc 184.56 11.41 5.06 6.59% $0.11 $0.55 12.84%
Corsair Gaming Inc 122 2.13 0.94 -0.47% $0.01 $0.09 16.49%
Eastman Kodak Co 5.33 0.31 0.28 0.0% $0.02 $0.05 -6.92%
AstroNova Inc 39.58 1.52 0.90 3.21% $0.01 $0.01 -4.71%
Transact Technologies Inc 15.25 1.98 1.01 2.35% $0.0 $0.01 -3.73%
Average 55.38 6.38 1.89 6.34% $0.25 $0.59 1.97%

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

  • At 31.29, the stock's Price to Earnings ratio is 0.57x less than the industry average, suggesting favorable growth potential.

  • It could be trading at a premium in relation to its book value, as indicated by its Price to Book ratio of 47.71 which exceeds the industry average by 7.48x.

  • The Price to Sales ratio of 7.91, which is 4.19x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.

  • The Return on Equity (ROE) of 37.5% is 31.16% above the industry average, highlighting efficient use of equity to generate profits.

  • With higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $30.65 Billion, which is 122.6x above the industry average, the company demonstrates stronger profitability and robust cash flow generation.

  • The company has higher gross profit of $40.43 Billion, which indicates 68.53x above the industry average, indicating stronger profitability and higher earnings from its core operations.

  • With a revenue growth of -0.72%, which is much lower than the industry average of 1.97%, the company is experiencing a notable slowdown in sales expansion.

Debt To Equity Ratio

debt to equity

The debt-to-equity (D/E) ratio assesses the extent to which a company relies on borrowed funds compared 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.

In light of the Debt-to-Equity ratio, a comparison between Apple and its top 4 peers reveals the following information:

  • 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 1.79.

Key Takeaways

Apple's low PE ratio suggests that it is undervalued compared to its peers in the Technology Hardware, Storage & Peripherals industry. The high PB and PS ratios indicate that the market is willing to pay a premium for Apple's assets and sales. Apple's high ROE, EBITDA, and gross profit ratios demonstrate its strong profitability and efficiency. However, the low revenue growth suggests that Apple's sales growth is slower compared to its industry peers.

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

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