Reviewing Apple (AAPL) and The Competition

Apple (NASDAQ: AAPL) is one of 31 publicly-traded companies in the “Computer Hardware” industry, but how does it contrast to its rivals? We will compare Apple to related companies based on the strength of its institutional ownership, dividends, earnings, analyst recommendations, profitability, risk and valuation.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Apple and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Apple 0 9 39 0 2.81
Apple Competitors 311 1517 3197 124 2.61

Apple currently has a consensus target price of $190.83, suggesting a potential upside of 22.27%. As a group, “Computer Hardware” companies have a potential downside of 6.68%. Given Apple’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Apple is more favorable than its rivals.

Dividends

Apple pays an annual dividend of $2.52 per share and has a dividend yield of 1.6%. Apple pays out 28.6% of its earnings in the form of a dividend. As a group, “Computer Hardware” companies pay a dividend yield of 2.6% and pay out 58.2% of their earnings in the form of a dividend. Apple has raised its dividend for 4 consecutive years.

Institutional & Insider Ownership

60.4% of Apple shares are owned by institutional investors. Comparatively, 62.0% of shares of all “Computer Hardware” companies are owned by institutional investors. 0.1% of Apple shares are owned by insiders. Comparatively, 13.8% of shares of all “Computer Hardware” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Apple and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Apple 20.87% 35.40% 14.00%
Apple Competitors 4.03% 10.45% 6.20%

Volatility and Risk

Apple has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500. Comparatively, Apple’s rivals have a beta of 1.28, indicating that their average share price is 28% more volatile than the S&P 500.

Valuation & Earnings

This table compares Apple and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Apple $223.51 billion $70.21 billion 17.74
Apple Competitors $21.04 billion $4.38 billion 19.42

Apple has higher revenue and earnings than its rivals. Apple is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Apple beats its rivals on 9 of the 15 factors compared.

About Apple

Apple Inc. (Apple) designs, manufactures and markets mobile communication and media devices, personal computers, and portable digital music players, and a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications. The Company’s products and services include iPhone, iPad, Mac, iPod, Apple TV, a portfolio of consumer and professional software applications, the iOS and OS X operating systems, iCloud, and a variety of accessory, service and support offerings. The Company also delivers digital content and applications through the iTunes Store, App StoreSM, iBookstoreSM, and Mac App Store. The Company distributes its products worldwide through its retail stores, online stores, and direct sales force, as well as through third-party cellular network carriers, wholesalers, retailers, and value-added resellers. In February 2012, the Company acquired app-search engine Chomp.

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