In today’s fast-paced and competitive business landscape, it is essential for investors and industry enthusiasts to thoroughly analyze companies before making investment decisions. 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 | 36.62 | 58.79 | 8.77 | 23.83% | $32.5 | $43.88 | 6.07% |
| Hewlett Packard Enterprise Co | 12.28 | 1.26 | 1.05 | 5.72% | $1.44 | $2.61 | 15.06% |
| NetApp Inc | 22.78 | 28.19 | 4.04 | 32.84% | $0.44 | $1.18 | 6.15% |
| Western Digital Corp | 74.10 | 2 | 1.57 | 4.28% | $0.86 | $1.55 | 48.91% |
| Pure Storage Inc | 179.69 | 16.21 | 8.11 | 4.44% | $0.11 | $0.58 | 8.94% |
| Super Micro Computer Inc | 16.15 | 3.47 | 1.31 | 6.68% | $0.4 | $0.6 | 37.87% |
| Eastman Kodak Co | 10.89 | 0.62 | 0.66 | 1.34% | $0.04 | $0.04 | -2.97% |
| Turtle Beach Corp | 60.42 | 3.69 | 1.11 | 3.3% | $0.01 | $0.03 | 59.51% |
| AstroNova Inc | 24.75 | 1.03 | 0.62 | 0.26% | $0.0 | $0.01 | 7.65% |
| Average | 50.13 | 7.06 | 2.31 | 7.36% | $0.41 | $0.82 | 22.64% |
Through a meticulous analysis of Apple, we can observe the following trends:
- The Price to Earnings ratio of 36.62 is 0.73x lower than the industry average, indicating potential undervaluation for the stock.
- It could be trading at a premium in relation to its book value, as indicated by its Price to Book ratio of 58.79 which exceeds the industry average by 8.33x.
- The stock’s relatively high Price to Sales ratio of 8.77, surpassing the industry average by 3.8x, may indicate an aspect of overvaluation in terms of sales performance.
- The Return on Equity (ROE) of 23.83% is 16.47% above the industry average, highlighting efficient use of equity to generate profits.
- The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $32.5 Billion is 79.27x above the industry average, highlighting stronger profitability and robust cash flow generation.
- The gross profit of $43.88 Billion is 53.51x above that of its industry, highlighting stronger profitability and higher earnings from its core operations.
- With a revenue growth of 6.07%, which is much lower than the industry average of 22.64%, the company is experiencing a notable slowdown in sales expansion.