EXFO (NASDAQ: EXFO) is one of 29 publicly-traded companies in the “Testing & Measuring Equipment” industry, but how does it contrast to its rivals? We will compare EXFO to similar businesses based on the strength of its analyst recommendations, institutional ownership, profitability, valuation, earnings, risk and dividends.

Earnings & Valuation

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

Gross Revenue EBITDA Price/Earnings Ratio
EXFO $243.18 million $17.91 million 101.28
EXFO Competitors $481.50 million $95.49 million -1.76

EXFO’s rivals have higher revenue and earnings than EXFO. EXFO is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EXFO 0 4 1 0 2.20
EXFO Competitors 48 395 499 9 2.49

EXFO currently has a consensus price target of $5.70, suggesting a potential upside of 40.74%. As a group, “Testing & Measuring Equipment” companies have a potential downside of 21.71%. Given EXFO’s higher possible upside, analysts plainly believe EXFO is more favorable than its rivals.

Profitability

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

Net Margins Return on Equity Return on Assets
EXFO 0.93% 3.25% 2.47%
EXFO Competitors -4.69% 2.35% -0.52%

Insider & Institutional Ownership

17.0% of EXFO shares are held by institutional investors. Comparatively, 58.2% of shares of all “Testing & Measuring Equipment” companies are held by institutional investors. 20.0% of EXFO shares are held by insiders. Comparatively, 10.4% of shares of all “Testing & Measuring Equipment” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

EXFO has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500. Comparatively, EXFO’s rivals have a beta of 0.82, indicating that their average share price is 18% less volatile than the S&P 500.

Summary

EXFO rivals beat EXFO on 7 of the 13 factors compared.

About EXFO

EXFO Inc is a Canada-based company, which provides communications service providers (CSPs) and data center, cloud and Web-scale operators with field test, service assurance and analytics solutions to ensure the deployment, maintenance and management of physical, virtual, fixed and mobile networks. It focuses on network infrastructures: fourth generation (4G)/long-term evolution (LTE), wireless backhaul, small cells and distributed antenna systems (DAS), 100G network upgrades and fiber-to-the-home (FTTH)/fiber-to-the-curb (FTTC)/fiber-to-the-node (FTTN) deployments. It offers a range of wire line and wireless tests, service assurance and analytics solutions to the global telecommunications industry. Its products include TestFlow; LTB-8 platform; a family of optical time domain reflect meters (OTDRs); iSAM; MaxTester-940 Fiber Certifier optical loss test set (OLTS) for data center and enterprise markets, and the G.fast handheld test set.

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