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Benzinga Insights 1-Sep-2025 11:00 AM
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 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 | 35.29 | 52.43 | 8.59 | 35.34% | $31.03 | $43.72 | 9.63% |
| Hewlett Packard Enterprise Co | 22.27 | 1.27 | 0.98 | -4.4% | $0.87 | $2.17 | 5.87% |
| Western Digital Corp | 18.44 | 5.36 | 3.09 | 5.21% | $0.51 | $1.07 | 29.99% |
| Pure Storage Inc | 197.38 | 19.96 | 8.19 | 3.68% | $0.04 | $0.54 | 10.6% |
| Super Micro Computer Inc | 26.17 | 4.16 | 1.26 | 3.08% | $0.26 | $0.54 | 7.51% |
| NetApp Inc | 20.75 | 24.06 | 3.68 | 23.13% | $0.38 | $1.1 | 1.17% |
| Logitech International SA | 24.82 | 7 | 3.41 | 6.77% | $0.18 | $0.48 | 5.47% |
| Turtle Beach Corp | 15.98 | 2.65 | 0.92 | -2.47% | $0.0 | $0.02 | -25.76% |
| Average | 46.54 | 9.21 | 3.08 | 5.0% | $0.32 | $0.85 | 4.98% |
By analyzing Apple, we can infer the following trends:
The Price to Earnings ratio of 35.29 is 0.76x 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 52.43 which exceeds the industry average by 5.69x.
With a relatively high Price to Sales ratio of 8.59, which is 2.79x the industry average, the stock might be considered overvalued based on sales performance.
The Return on Equity (ROE) of 35.34% is 30.34% 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 $31.03 Billion, which is 96.97x above the industry average, indicating stronger profitability and robust cash flow generation.
With higher gross profit of $43.72 Billion, which indicates 51.44x above the industry average, the company demonstrates stronger profitability and higher earnings from its core operations.
With a revenue growth of 9.63%, which surpasses the industry average of 4.98%, the company is demonstrating robust sales expansion and gaining market share.
The debt-to-equity (D/E) ratio is a financial metric that helps determine the level of financial risk associated with a company's capital structure.
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.
In terms of the Debt-to-Equity ratio, Apple can be assessed by comparing it to its top 4 peers, resulting in the following observations:
Apple holds a middle position in terms of the debt-to-equity ratio compared to its top 4 peers.
This indicates a balanced financial structure with a moderate level of debt and an appropriate reliance on equity financing with a debt-to-equity ratio of 1.54.
For Apple in the Technology Hardware, Storage & Peripherals industry, the PE ratio is low compared to peers, indicating potential undervaluation. The PB and PS ratios are high, suggesting overvaluation relative to industry standards. In terms of ROE, EBITDA, gross profit, and revenue growth, Apple demonstrates strong performance compared to its industry peers, reflecting robust financial health and growth potential.
This article was generated by Benzinga's automated content engine and reviewed by an editor.