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

Earnings and Valuation

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

Gross Revenue EBITDA Price/Earnings Ratio
Apple $223.51 billion $70.21 billion 18.17
Apple Competitors $21.02 billion $4.40 billion 19.57

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.

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 increased its dividend for 4 consecutive years.

Insider and Institutional Ownership

60.5% of Apple shares are held by institutional investors. Comparatively, 62.2% of shares of all “Computer Hardware” companies are held by institutional investors. 0.1% of Apple shares are held by insiders. Comparatively, 13.8% of shares of all “Computer Hardware” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Apple and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Apple 0 10 39 0 2.80
Apple Competitors 311 1514 3194 123 2.61

Apple currently has a consensus price target of $190.31, suggesting a potential upside of 19.03%. As a group, “Computer Hardware” companies have a potential downside of 7.13%. Given Apple’s stronger consensus rating and higher probable upside, equities analysts clearly believe Apple is more favorable than its rivals.

Risk and Volatility

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

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 4.22% 10.64% 6.36%

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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