Cavium (NASDAQ: CAVM) is one of 104 publicly-traded companies in the “Semiconductors” industry, but how does it compare to its competitors? We will compare Cavium to similar businesses based off the strength of its valuation, analyst recommendations, dividends, institutional ownership, risk, earnings and profitability.

Valuation and Earnings

This table compares Cavium and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Cavium $865.94 million $79.41 million -20.57
Cavium Competitors $4.51 billion $1.30 billion 82.15

Cavium’s competitors have higher revenue and earnings than Cavium. Cavium is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently the more affordable than other companies in its industry.

Institutional & Insider Ownership

98.3% of Cavium shares are held by institutional investors. Comparatively, 67.1% of shares of all “Semiconductors” companies are held by institutional investors. 4.7% of Cavium shares are held by insiders. Comparatively, 6.6% of shares of all “Semiconductors” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Cavium and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cavium -22.82% 5.94% 2.78%
Cavium Competitors -47.63% 0.26% 0.13%

Risk and Volatility

Cavium has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500. Comparatively, Cavium’s competitors have a beta of 1.07, meaning that their average stock price is 7% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Cavium and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cavium 0 5 13 0 2.72
Cavium Competitors 1142 5225 8745 406 2.54

Cavium presently has a consensus price target of $77.29, suggesting a potential upside of 26.93%. All “Semiconductors” companies have a potential upside of 17.49%. Given Cavium’s stronger consensus rating and higher probable upside, analysts clearly believe Cavium is more favorable than its competitors.

Summary

Cavium beats its competitors on 9 of the 13 factors compared.

Cavium Company Profile

Cavium, Inc. is a provider of integrated semiconductor processors that enable intelligent processing for wired and wireless infrastructure and cloud for networking, communications, storage and security applications. The Company’s products consist of multi-core processors for embedded and data center applications, network connectivity for server and switches, storage connectivity, and security processors for offload and appliance. A range of its products also include a suite of embedded security protocols that enable unified threat management (UTM), secure connectivity, network perimeter protection and deep packet inspection (DPI). The Company sells its products to networking original equipment manufacturers (OEM), which sell into the enterprise, datacenter, service provider, and broadband and consumer markets. In the enterprise market, its products are used in routers, switches, storage appliances, server connectivity for networking and storage, wireless local area networks and UTM.

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