Benzinga - by Benzinga Insights, Benzinga Staff Writer.
In today's rapidly changing and fiercely competitive business landscape, it is vital for investors and industry enthusiasts to carefully evaluate companies. In this article, we will perform a comprehensive industry comparison, evaluating Apple (NASDAQ:AAPL) against its key competitors in the Technology Hardware, Storage & Peripherals industry. By analyzing important 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.
| Apple Inc | 31.96 | 49.02 | 8.08 | 37.5% | $30.65 | $40.43 | -0.72% |
| Hewlett Packard Enterprise Co | 10.90 | 1.02 | 0.76 | 3.07% | $1.23 | $2.56 | 4.98% |
| NetApp Inc | 27.69 | 24 | 3.18 | 28.36% | $0.39 | $1.11 | -6.07% |
| Super Micro Computer Inc | 29.75 | 8.31 | 2.46 | 7.59% | $0.19 | $0.35 | 14.45% |
| Pure Storage Inc | 166.85 | 10.31 | 4.58 | 6.59% | $0.11 | $0.55 | 12.84% |
| Xerox Holdings Corp | 17.02 | 0.79 | 0.40 | 1.46% | $0.14 | $0.54 | -5.65% |
| Corsair Gaming Inc | 134.55 | 2.35 | 1.04 | -0.47% | $0.01 | $0.09 | 16.49% |
| Eastman Kodak Co | 5.58 | 0.32 | 0.30 | 0.0% | $0.02 | $0.05 | -6.92% |
| AstroNova Inc | 35.56 | 1.37 | 0.80 | 3.21% | $0.01 | $0.01 | -4.71% |
| Transact Technologies Inc | 13.55 | 1.76 | 0.89 | 2.35% | $0.0 | $0.01 | -3.73% |
| Average | 49.05 | 5.58 | 1.6 | 5.8% | $0.23 | $0.59 | 2.41% |
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.dividend-frequency { font-size: 12px; color: #6c757d; } By conducting an in-depth analysis of Apple, we can identify the following trends:
- At 31.96, the stock's Price to Earnings ratio is 0.65x less than the industry average, suggesting favorable growth potential.
- The elevated Price to Book ratio of 49.02 relative to the industry average by 8.78x suggests company might be overvalued based on its book value.
- The Price to Sales ratio of 8.08, which is 5.05x 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 31.7% above the industry average, highlighting efficient use of equity to generate profits.
- The company exhibits higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $30.65 Billion, which is 133.26x above the industry average, implying stronger profitability and robust cash flow generation.
- Compared to its industry, 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.
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With a revenue growth of -0.72%, which is much lower than the industry average of 2.41%, the company is experiencing a notable slowdown in sales expansion.
The debt-to-equity (D/E) ratio gauges the extent to which a company has financed its operations through debt relative to 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.
When evaluating Apple alongside its top 4 peers in terms of the Debt-to-Equity ratio, the following insights arise:
- 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.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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