Better Bet Than Apple Stock: Pay Less To Get More From Industry Peers
As Apple continues to define its role in the technology hardware sector, a closer look at its key peers—SMCI and NTAP—reveals intriguing disparities in growth and valuation. While Apple commands a higher valuation as indicated by a higher price-to-operating income ratio, its competitors are experiencing significantly stronger revenue and operating income growth. This discrepancy invites investors to consider whether Apple remains the best opportunity or if its peers present a more compelling case for investment.
Key Metrics Compared
| Metric | AAPL | SMCI | NTAP |
|---|---|---|---|
| P/EBIT* | 24.7x | 21.1x | 14.7x |
| LTM OpInc Growth | 7.7% | 14.3% | 12.4% |
| 3Y Avg OpInc Growth | 2.4% | 104.4% | 6.0% |
| LTM Revenue Growth | 4.9% | 82.5% | 4.9% |
| 3Y Avg Revenue Growth | 1.3% | 68.1% | 1.4% |
Uncover more peer insights on Apple peer comparison and Apple counter-intuitive comparison
OpInc = Operating Income, P/EBIT = Price To Operating Income Ratio
Is The Mismatch In Stock Price Temporary
One way to check if Apple stock is expensive now versus the other tickers would be to see how these metrics compared across companies exactly a year ago. Specifically, if there has been a marked reversal in the trend for Apple in the last 12 months, then there is a chance that the current mismatch is likely to reverse. On the other hand, a persistent underperformance in revenue and operating income growth for Apple would reinforce the conclusion that the stock is expensive compared to its peers, but may not revert soon
Key Metrics Compared 1 Yr Prior
| Metric | AAPL | SMCI | NTAP |
|---|---|---|---|
| P/EBIT* | 29.4x | 45.7x | 21.0x |
| LTM OpInc Growth | 5.9% | 77.6% | 14.2% |
| 3Y Avg OpInc Growth | 2.5% | 170.0% | 5.5% |
| LTM Revenue Growth | 2.6% | 125.0% | 5.3% |
| 3Y Avg Revenue Growth | 1.5% | 74.5% | 1.8% |
OpInc = Operating Income
Additional Metrics To Consider
| Metric | AAPL | SMCI | NTAP |
|---|---|---|---|
| P/S | 7.9x | 1.4x | 3.3x |
| Market Cap (Current) | $ 3.15 Tril | $ 29.22 Bil | $ 21.44 Bil |
| LTM Revenue | $ 400.37 Bil | $ 21.57 Bil | $ 6.57 Bil |
| LTM Opinc | $ 127.36 Bil | $ 1.31 Bil | $ 1.43 Bil |
| LTM Op Margin | 31.8% | 6.1% | 21.7% |
OpInc = Operating Income
Overview of Returns:
Individual Stock Returns YTD:
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| AAPL Return | 82% | 35% | -26% | 49% | 31% | -16% | 199% | ||
| SMCI Return | 32% | 39% | 87% | 246% | 7% | 55% | 1861% | <=== | |
| NTAP Return | 11% | 42% | -33% | 51% | 34% | -8% | 98% | ||
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 6% | 94% | ||
| Monthly Win Rates [3] | |||||||||
| AAPL Win Rate | 67% | 67% | 25% | 75% | 58% | 33% | 54% | ||
| SMCI Win Rate | 58% | 58% | 50% | 58% | 42% | 50% | 53% | ||
| NTAP Win Rate | 58% | 75% | 33% | 42% | 50% | 67% | 54% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 50% | 61% | <=== | |
| Max Drawdowns [4] | |||||||||
| AAPL Max Drawdown | -23% | -12% | -29% | -4% | -14% | -31% | -19% | ||
| SMCI Max Drawdown | -33% | -2% | -21% | -14% | -37% | -12% | -20% | ||
| NTAP Max Drawdown | -43% | -7% | -35% | 0% | -3% | -34% | -20% | ||
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | -12% | <=== | |
[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year till date (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
Alternate buying based on valuation, while attractive, needs to be evaluated carefully from multiple angles. Such multi-factor analysis is exactly how we construct Trefis portfolio strategies. If you want upside with a smoother ride than an individual stock, consider the High Quality portfolio, which has outperformed the S&P, and clocked >91% returns since inception.