Financial Contrast: Ciena Corporation (CIEN) and Its Competitors
Ciena Corporation (NYSE: CIEN) is one of 67 public companies in the “Communications & Networking” industry, but how does it contrast to its competitors? We will compare Ciena Corporation to similar companies based on the strength of its profitability, dividends, earnings, institutional ownership, risk, analyst recommendations and valuation.
Insider & Institutional Ownership
64.8% of shares of all “Communications & Networking” companies are owned by institutional investors. 1.5% of Ciena Corporation shares are owned by insiders. Comparatively, 13.2% of shares of all “Communications & Networking” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This table compares Ciena Corporation and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ciena Corporation Competitors||-2.00%||-5.72%||0.42%|
Valuation and Earnings
This table compares Ciena Corporation and its competitors revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Ciena Corporation||$2.77 billion||$361.58 million||23.27|
|Ciena Corporation Competitors||$2.88 billion||$624.22 million||27.36|
Ciena Corporation’s competitors have higher revenue and earnings than Ciena Corporation. Ciena Corporation is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
Risk and Volatility
Ciena Corporation has a beta of 1.69, meaning that its share price is 69% more volatile than the S&P 500. Comparatively, Ciena Corporation’s competitors have a beta of 1.17, meaning that their average share price is 17% more volatile than the S&P 500.
This is a breakdown of recent ratings and recommmendations for Ciena Corporation and its competitors, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ciena Corporation Competitors||368||2398||3933||156||2.57|
Ciena Corporation presently has a consensus target price of $29.50, indicating a potential upside of 37.79%. As a group, “Communications & Networking” companies have a potential upside of 23.53%. Given Ciena Corporation’s stronger consensus rating and higher probable upside, equities analysts clearly believe Ciena Corporation is more favorable than its competitors.
Ciena Corporation beats its competitors on 7 of the 13 factors compared.
Ciena Corporation Company Profile
Ciena Corporation is a network strategy and technology company, which provides solutions that enable a range of network operators to adopt communication architectures and deliver an array of services, relied upon by enterprise and consumer end users. It provides equipment, software and services that support the transport, switching, aggregation, service delivery and management of voice, video and data traffic on communications networks. It segments include Networking Platforms; Software and Software-Related Services, and Global Services. The Networking Platforms segment consists of Converged Packet Optical, Packet Networking and Optical Transport product portfolios. The software business is engaged in the development and licensing of element and network management software and software-related services that support its hardware offerings. It offers a suite of consulting and support services that help its customers to design, optimize, deploy and maintain their communications networks.
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