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

Valuation & Earnings

This table compares EXFO and its competitors gross revenue, earnings per share (EPS) 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 competitors have higher revenue and earnings than EXFO. EXFO is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares EXFO and its competitors’ 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 -4.90% 2.01% -0.80%

Volatility & Risk

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

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EXFO 0 4 1 0 2.20
EXFO Competitors 48 394 499 9 2.49

EXFO currently has a consensus price target of $5.70, indicating 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 competitors.

Institutional and Insider Ownership

17.0% of EXFO shares are owned by institutional investors. Comparatively, 58.2% of shares of all “Testing & Measuring Equipment” companies are owned by institutional investors. 20.0% of EXFO shares are owned by insiders. Comparatively, 10.4% of shares of all “Testing & Measuring Equipment” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

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

EXFO Company Profile

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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