Competitor Analysis: Evaluating 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 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.

Apple Background

Apple designs a wide variety of consumer electronic devices, including smartphones (iPhone), tablets (iPad), PCs (Mac), smartwatches (Apple Watch), and AirPods, among others. In addition, Apple offers its customers a variety of services such as Apple Music, iCloud, Apple Care, Apple TV+, Apple Arcade, Apple Fitness, Apple Card, and Apple Pay, among others. Apple's products include internally developed software and semiconductors, and the firm is well known for its integration of hardware, software, semiconductors, and services. Apple's products are distributed online as well as through company-owned stores and third-party retailers.

Company P/E P/B P/S ROE EBITDA (in billions) Gross Profit (in billions) Revenue Growth
Apple Inc 29.03 44.87 7.18 32.48% $26.78 $36.41 -1.4%
Hewlett Packard Enterprise Co 18.31 0.95 0.67 2.26% $1.24 $2.51 0.73%
NetApp Inc 13.27 17.52 2.58 14.67% $0.27 $1.0 -10.05%
Super Micro Computer Inc 22.30 6.84 2 10.35% $0.24 $0.37 33.59%
Corsair Gaming Inc 250.97 2.01 0.93 0.17% $0.01 $0.08 14.63%
Eastman Kodak Co 5.81 0.32 0.29 2.75% $0.06 $0.06 -8.1%
AstroNova Inc 103.83 1.10 0.61 -1.9% $-0.0 $0.01 10.12%
Transact Technologies Inc 12.55 1.54 0.75 2.03% $0.0 $0.01 57.7%
Average 61.01 4.33 1.12 4.33% $0.26 $0.58 14.09%

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

  • With a Price to Earnings ratio of 29.03, which is 0.48x less than the industry average, the stock shows potential for growth at a reasonable price, making it an interesting consideration for market participants.

  • The elevated Price to Book ratio of 44.87 relative to the industry average by 10.36x suggests company might be overvalued based on its book value.

  • The Price to Sales ratio of 7.18, which is 6.41x 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 32.48% is 28.15% above the industry average, highlighting efficient use of equity to generate profits.

  • Compared to its industry, the company has higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $26.78 Billion, which is 103.0x above the industry average, indicating stronger profitability and robust cash flow generation.

  • Compared to its industry, the company has higher gross profit of $36.41 Billion, which indicates 62.78x above the industry average, indicating stronger profitability and higher earnings from its core operations.

  • The company's revenue growth of -1.4% is significantly lower compared to the industry average of 14.09%. This indicates a potential fall in the company's sales performance.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio provides insights into the proportion of debt a company has in relation to its equity and asset value.

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 1.81.

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

Key Takeaways

Apple has a low PE ratio compared to its peers in the Technology Hardware, Storage & Peripherals industry, indicating that it may be undervalued. The high PB and PS ratios suggest that the market is willing to pay a premium for Apple's assets and sales. Apple's high ROE, EBITDA, gross profit, and low revenue growth indicate that it is efficiently utilizing its resources and generating strong profits. Overall, Apple's valuation analysis suggests that it is a financially sound company in the industry.

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

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