Meridian Financial Partners LLC Sells 117 Shares of Apple Inc. (NASDAQ:AAPL)
Feb 26, 2025
In-Depth Analysis of Apple and Its Competitors in the Technology Hardware, Storage & Peripherals Industry
In the fast-paced and competitive environment of today's business landscape, investors and analysts must thoroughly evaluate companies before making investment decisions. This article presents a detailed comparison of Apple Inc. (NASDAQ: AAPL) and its primary competitors within the Technology Hardware, Storage & Peripherals sector. We aim to provide valuable insights about the performance of these companies in the industry by examining key financial metrics, market positioning, and growth prospects.
Overview of Apple Inc.
Apple is one of the most influential companies globally, with a diverse range of hardware and software offerings catering to both individual consumers and enterprises. A significant portion of Apple's revenue comes from the sales of its flagship product, the iPhone. Other popular products in its portfolio include the Mac, iPad, and Apple Watch, all of which are designed to function seamlessly within a vast software ecosystem centered around the iPhone. Over recent years, Apple has made strides to expand its services to include streaming video, subscription bundles, and augmented reality applications. The company develops its own software and semiconductors, while relying on manufacturing partners like Foxconn and TSMC for product and chip assembly. Just under half of Apple’s revenue is generated through its own retail stores, with a substantial portion also coming from distribution partners.
| Company | P/E | P/B | P/S | ROE | EBITDA (in billions) | Gross Profit (in billions) | Revenue Growth |
|---|---|---|---|---|---|---|---|
| Apple Inc | 34.65 | 49.12 | 8.44 | 58.74% | $45.91 | $58.27 | 3.95% |
| Super Micro Computer Inc | 18.33 | 4.01 | 1.28 | 5.29% | $0.4 | $0.67 | 54.93% |
| Hewlett Packard Enterprise Co | 7.72 | 0.84 | 0.70 | 2.39% | $1.11 | $2.29 | 16.27% |
| NetApp Inc | 17.09 | 19.14 | 2.99 | 31.69% | $0.45 | $1.15 | 2.18% |
| Pure Storage Inc | 165 | 12.77 | 5.53 | 3.12% | $0.11 | $0.58 | 5.87% |
| Western Digital Corp | 12.62 | 1.25 | 0.96 | 4.89% | $0.96 | $1.52 | 41.33% |
| Eastman Kodak Co | 6.94 | 0.79 | 0.55 | 2.46% | $0.05 | $0.05 | -3.27% |
| Turtle Beach Corp | 18.68 | 2.41 | 0.81 | 18.11% | $0.03 | $0.05 | 46.76% |
| AstroNova Inc | 19.35 | 0.81 | 0.49 | 0.26% | $0.0 | $0.01 | 7.65% |
| Average | 33.22 | 5.25 | 1.66 | 8.53% | $0.39 | $0.79 | 21.47% |
Analyzing Apple's financials reveals several key trends:
With a Price to Earnings (P/E) ratio of 34.65, Apple’s stock is valued significantly above the industry average by 1.04x, indicating a premium pricing.
The Price to Book (P/B) ratio at 49.12 also suggests a premium valuation, exceeding the industry average by 9.36x.
Apple's Price to Sales (P/S) ratio of 8.44 is 5.08x higher than the industry average, which may imply overvaluation based on sales.
The company demonstrates efficient use of equity with an impressive Return on Equity (ROE) of 58.74%, which is 50.21% above the industry average.
Apple's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $45.91 billion is 117.72x greater than the industry average, showcasing its strong profitability and solid cash flow.
With a gross profit of $58.27 billion, Apple is 73.76x higher than the industry average, indicating strong earnings from its core business operations.
The company's revenue growth of 3.95% is notably lower than the industry average of 21.47%, reflecting a significant slowdown in sales growth.
Debt to Equity Ratio Analysis
The debt-to-equity (D/E) ratio offers crucial insights into a company's financial structure, illustrating the balance between debt and equity financing.
When comparing Apple's debt-to-equity ratio against its top four competitors, the following insights emerge:
Apple's position relative to its top competition shows it has a moderate debt-to-equity ratio of 1.45, placing it in the mid-range in terms of financial leverage.
This indicates that Apple maintains a balanced financial structure, utilizing a reasonable amount of debt while relying predominantly on equity financing.
Conclusion and Insights
In the Technology Hardware, Storage & Peripherals industry, Apple's high P/E, P/B, and P/S ratios compared to its peers suggest that the stock may be overvalued. Nevertheless, the company's impressive ROE, EBITDA, and gross profit highlight its strong profitability and operational effectiveness compared to competitors. However, the notable dip in revenue growth indicates that investors should tread cautiously.
This article is a neutral analysis of Apple's position in the market.
Apple, Competitors, Analysis