Performance Comparison: Apple And Competitors In Technology Hardware, Storage & Peripherals Industry
In the dynamic and cutthroat world of business, conducting thorough company analysis is essential for investors and industry experts. In this article, we will undertake a comprehensive industry comparison, evaluating Apple (NASDAQ:AAPL) and its primary competitors in the Technology Hardware, Storage & Peripherals industry. By closely examining key financial metrics, market position, and growth prospects, our aim is to provide valuable insights for investors and shed light on company's performance within the industry.
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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 | 33.28 | 47.18 | 8.11 | 58.74% | $45.91 | $58.27 | 3.95% |
| Super Micro Computer Inc | 16.99 | 3.72 | 1.19 | 5.29% | $0.4 | $0.67 | 54.93% |
| Hewlett Packard Enterprise Co | 7.10 | 0.77 | 0.64 | 2.39% | $1.11 | $2.29 | 16.27% |
| NetApp Inc | 16.68 | 18.68 | 2.92 | 31.69% | $0.45 | $1.15 | 2.18% |
| Pure Storage Inc | 156.58 | 12.12 | 5.25 | 3.12% | $0.11 | $0.58 | 5.87% |
| Western Digital Corp | 12.15 | 1.21 | 0.92 | 4.89% | $0.96 | $1.52 | 41.33% |
| Eastman Kodak Co | 9.56 | 0.55 | 0.58 | 1.34% | $0.04 | $0.04 | -2.97% |
| Turtle Beach Corp | 46.10 | 2.82 | 0.85 | 3.3% | $0.01 | $0.03 | 59.51% |
| AstroNova Inc | 21.22 | 0.88 | 0.54 | 0.26% | $0.0 | $0.01 | 7.65% |
| Average | 35.8 | 5.09 | 1.61 | 6.54% | $0.39 | $0.79 | 23.1% |
Upon a comprehensive analysis of Apple, the following trends can be discerned:
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The stock's Price to Earnings ratio of 33.28 is lower than the industry average by 0.93x, suggesting potential value in the eyes of market participants.
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The elevated Price to Book ratio of 47.18 relative to the industry average by 9.27x suggests company might be overvalued based on its book value.
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The Price to Sales ratio of 8.11, which is 5.04x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.
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The company has a higher Return on Equity (ROE) of 58.74%, which is 52.2% above the industry average. This suggests efficient use of equity to generate profits and demonstrates profitability and growth potential.
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Compared to its industry, the company has higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $45.91 Billion, which is 117.72x above the industry average, indicating stronger profitability and robust cash flow generation.
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Compared to its industry, the company has higher gross profit of $58.27 Billion, which indicates 73.76x above the industry average, indicating stronger profitability and higher earnings from its core operations.
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The company's revenue growth of 3.95% is significantly lower compared to the industry average of 23.1%. 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:
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When evaluating the debt-to-equity ratio, Apple is in the middle position among its top 4 peers.
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The company maintains a moderate level of debt relative to its equity with a debt-to-equity ratio of 1.45, suggesting a relatively balanced financial structure.
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 low revenue growth suggest that Apple is efficiently utilizing its resources and generating strong profits, despite slower revenue growth. Overall, Apple's financial performance is solid, with room for potential growth in the future.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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