Amidst the fast-paced and highly competitive business environment of today, conducting comprehensive company analysis is essential for investors and industry enthusiasts. In this article, we will delve into an extensive industry comparison, evaluating Apple ( AAPL ) in comparison to its major competitors within the Technology Hardware, Storage & Peripherals industry. By analyzing critical financial metrics, market position, and growth potential, our objective is to provide valuable insights for investors and offer a deeper understanding of company's performance in the industry.

Apple Background

Apple ( AAPL ) is among the largest companies in the world, with a broad portfolio of hardware and software products targeted at consumers and businesses. Apple's ( AAPL ) iPhone makes up a majority of the firm sales, and Apple's ( AAPL ) other products like Mac, iPad, and Watch are designed around the iPhone as the focal point of an expansive software ecosystem. Apple ( AAPL ) 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 ( AAPL ) sales come directly through its flagship stores, with a majority of sales coming indirectly through partnerships and distribution.

When closely examining Apple ( AAPL ), the following trends emerge:

• At 35.52, the stock's Price to Earnings ratio significantly exceeds the industry average by 1.05x, suggesting a premium valuation relative to industry peers.

• The elevated Price to Book ratio of 50.35 relative to the industry average by 9.41x suggests company might be overvalued based on its book value.

• The Price to Sales ratio of 8.65, which is 5.12x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.

• The company has a higher Return on Equity (ROE) of 58.74%, which is 50.21% above the industry average. This suggests efficient use of equity to generate profits and demonstrates profitability and growth potential.

• The company exhibits higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $45.91 Billion, which is 117.72x above the industry average, implying stronger profitability and robust cash flow generation.

• With higher gross profit of $58.27 Billion, which indicates 73.76x above the industry average, the company demonstrates stronger profitability and higher earnings from its core operations.

• The company is witnessing a substantial decline in revenue growth, with a rate of 3.95% compared to the industry average of 21.47%, which indicates a challenging sales environment.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio is an important measure to assess the financial structure and risk profile of a company.

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 comparing Apple ( AAPL ) with its top 4 peers based on the Debt-to-Equity ratio, the following insights can be observed:

• Compared to its top 4 peers, Apple ( AAPL ) has a moderate debt-to-equity ratio of 1.45, indicating a balanced financial structure.

• This suggests that the company maintains a reasonable level of debt while also leveraging equity financing.

Key Takeaways

For Apple ( AAPL ) in the Technology Hardware, Storage & Peripherals industry, the PE, PB, and PS ratios are all high compared to its peers, indicating that the stock may be overvalued. On the other hand, Apple's ( AAPL ) high ROE, EBITDA, gross profit, and low revenue growth suggest strong profitability and operational efficiency relative to its industry competitors.

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