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 ( 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 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.

table {

width: 100%;

border-collapse: collapse;

font-family: Arial, sans-serif;

font-size: 14px;

}

th, td {

padding: 8px;

text-align: left;

}

th {

background-color: #293a5a;

color: #fff;

text-align: left;

}

tr:nth-child(even) {

background-color: #f2f4f8;

}

tr:hover {

background-color: #e1e4ea;

}

td:nth-child(3), td:nth-child(5) {

text-align: left;

}

.dividend-amount {

font-weight: bold;

color: #0d6efd;

}

.dividend-frequency {

font-size: 12px;

color: #6c757d;

}

By thoroughly analyzing Apple ( AAPL ), we can discern the following trends:

Notably, the current Price to Earnings ratio for this stock, 36.53, is 1.11x above the industry norm, reflecting a higher valuation relative to the industry.

The elevated Price to Book ratio of 58.96 relative to the industry average by 10.45x suggests company might be overvalued based on its book value.

The Price to Sales ratio of 8.75, which is 4.44x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.

With a Return on Equity (ROE) of 23.83% that is 16.97% above the industry average, it appears that the company exhibits efficient use of equity to generate profits.

With higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $32.5 Billion, which is 85.53x above the industry average, the company demonstrates stronger profitability and robust cash flow generation.

Compared to its industry, the company has higher gross profit of $43.88 Billion, which indicates 55.54x above the industry average, indicating stronger profitability and higher earnings from its core operations.

The company is witnessing a substantial decline in revenue growth, with a rate of 6.07% compared to the industry average of 180.48%, which indicates a challenging sales environment.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio indicates the proportion of debt and equity used by a company to finance its assets and operations.

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

When compared to its top 4 peers, Apple ( AAPL ) has a moderate debt-to-equity ratio of 1.87.

This implies that the company maintains a balanced financial structure with a reasonable level of debt and an appropriate reliance on 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, and gross profit suggest strong profitability and operational efficiency. However, the low revenue growth rate may be a concern for the company's future performance relative to its industry peers.

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