Companies

Analyzing Apple's Position Among Competitors in the Technology Hardware, Storage & Peripherals Sector

Published February 4, 2025

In the fast-paced and competitive technology industry, it is essential for investors and those interested in the market to thoroughly analyze various companies. This article provides a detailed comparison of Apple Inc. (NASDAQ:AAPL) and its significant competitors within the Technology Hardware, Storage & Peripherals sector. By reviewing key financial indicators, market dynamics, and future growth opportunities, we aim to offer insightful perspectives on Apple's standing in the industry.

Overview of Apple

Apple stands as one of the largest corporations globally, boasting an extensive range of hardware and software products for both consumers and businesses. The iPhone constitutes a large portion of Apple's sales, with other products like the Mac, iPad, and Apple Watch complementing the iPhone as the centerpiece of a comprehensive software ecosystem. Over the years, Apple has expanded its offerings by incorporating new services, such as streaming video, subscription packages, and augmented reality experiences. Notably, Apple develops its own software and semiconductors while partnering with manufacturers like Foxconn and TSMC to produce various products and chips. Almost half of Apple's revenue is generated directly from its retail stores, with the remainder derived from partnerships and distribution channels.

Average

Company	P/E	P/B	P/S	ROE	EBITDA (in billions)	Gross Profit (in billions)	Revenue Growth
Apple Inc	36.19	51.31	8.82	58.74%	$45.91	$58.27	3.95%
Hewlett Packard Enterprise Co	10.60	1.08	0.91	5.72%	$1.44	$2.61	15.06%
NetApp Inc	22.05	27.29	3.91	32.84%	$0.44	$1.18	6.15%
Western Digital Corp	18.62	1.85	1.41	4.89%	$0.96	$1.52	41.33%
Pure Storage Inc	171.23	15.44	7.73	4.44%	$0.11	$0.58	8.94%
Super Micro Computer Inc	13.36	2.87	1.08	6.68%	$0.4	$0.6	37.87%
Eastman Kodak Co	10.44	0.60	0.64	1.34%	$0.04	$0.04	-2.97%
Turtle Beach Corp	54.26	3.32	1	3.3%	$0.01	$0.03	59.51%
AstroNova Inc	21.90	0.91	0.55	0.26%	$0.0	$0.01	7.65%
40.31	6.67	2.15	7.43%	$0.42	$0.82	21.69%

The analysis of Apple's performance reveals several notable trends:

Apple's Price to Earnings (P/E) ratio stands at 36.19, indicating that the stock is slightly less expensive compared to the industry average, suggesting growth opportunities.
With a Price to Book (P/B) ratio of 51.31, which is significantly above the industry average, it may imply that Apple is overvalued based on its book value.
The Price to Sales (P/S) ratio of 8.82 is considerably higher than the industry average, suggesting a potential overvaluation in relation to sales performance compared to its competitors.
Apple caters a Return on Equity (ROE) of 58.74%, indicating effective use of shareholder equity to generate profits.
Moreover, Apple's earnings, measured by EBITDA, amounts to $45.91 billion, which is far above the industry average, displaying enhanced profitability and the ability to generate substantial cash flow.
The company's gross profit stands at $58.27 billion, significantly outperforming others in the sector, reflecting strong earnings from its core operations.
However, revenue growth at 3.95% shows a notable slowdown compared to the industry average growth of 21.69%.

Understanding Debt to Equity Ratio

The debt-to-equity (D/E) ratio serves as a crucial financial measure indicating the extent of a company's financial leverage. By considering this ratio, investors can better understand a company’s financial health and risk profile.

In comparing Apple with its primary competitors in terms of the D/E ratio, the analysis yields the following insights:

Apple's placement in the debt-to-equity ratio is moderate.
Its D/E ratio stands at 1.45, indicating a balanced financial structure with a reasonable mix of debt and equity.

Concluding Insights

In summary, while Apple's P/E ratio is lower compared to its peers, suggesting it could be undervalued, the elevated P/B and P/S ratios hint at a potential overvaluation in relation to industry standards. Apple continues to demonstrate strong financial performance in terms of ROE, EBITDA, and gross profit when compared to its peers. However, the company faces challenges with slowing revenue growth, which could affect its overall market position.

Apple, Technology, Competition