In today's rapidly changing and fiercely competitive business landscape, it is essential for investors and industry enthusiasts to thoroughly analyze companies. In this article, we will conduct a comprehensive industry comparison, evaluating Apple ( 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 ( 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.

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Through a thorough examination of Apple ( AAPL ), we can discern the following trends:

At 35.16, the stock's Price to Earnings ratio significantly exceeds the industry average by 1.09x, suggesting a premium valuation relative to industry peers.

The elevated Price to Book ratio of 49.85 relative to the industry average by 9.64x suggests company might be overvalued based on its book value.

With a relatively high Price to Sales ratio of 8.57, which is 5.26x the industry average, the stock might be considered overvalued based on sales performance.

The Return on Equity (ROE) of 58.74% is 50.21% 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 $45.91 Billion, which is 117.72x above the industry average, indicating stronger profitability and robust cash flow generation.

Compared to its industry, the company has higher gross profit of $58.27 Billion, which indicates 73.76x above the industry average, indicating stronger profitability and higher earnings from its core operations.

The company's revenue growth of 3.95% is significantly below the industry average of 21.47%. This suggests a potential struggle in generating increased sales volume.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio is a measure that indicates the level of debt a company has taken on relative to the value of its assets net of liabilities.

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:

Among its top 4 peers, Apple ( AAPL ) is placed in the middle with a moderate debt-to-equity ratio of 1.45.

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

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.