Amidst today's fast-paced and highly competitive business environment, it is crucial for investors and industry enthusiasts to conduct comprehensive company evaluations. 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.

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Upon closer analysis of Apple ( AAPL ), the following trends become apparent:

With a Price to Earnings ratio of 34.41, which is 0.71x less than the industry average, the stock shows potential for growth at a reasonable price, making it an interesting consideration for market participants.

The elevated Price to Book ratio of 51.13 relative to the industry average by 5.35x suggests company might be overvalued based on its book value.

With a relatively high Price to Sales ratio of 8.38, which is 2.62x the industry average, the stock might be considered overvalued based on sales performance.

The Return on Equity (ROE) of 35.34% is 29.55% 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 88.66x above the industry average, indicating stronger profitability and robust cash flow generation.

Compared to its industry, the company has higher gross profit of $43.72 Billion, which indicates 47.52x above the industry average, indicating stronger profitability and higher earnings from its core operations.

The company's revenue growth of 9.63% exceeds the industry average of 6.78%, indicating strong sales performance and market outperformance.

Debt To Equity Ratio

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.

By evaluating Apple ( AAPL ) against its top 4 peers in terms of the Debt-to-Equity ratio, the following observations arise:

When evaluating the debt-to-equity ratio, Apple ( AAPL ) is in the middle position among its top 4 peers.

The company maintains a moderate level of debt relative to its equity with a debt-to-equity ratio of 1.54, suggesting a relatively balanced financial structure.

Key Takeaways

For Apple ( AAPL ) 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 ( AAPL ) demonstrates strong performance compared to its industry peers, reflecting favorable financial health and growth prospects.

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