Brocade Communications Systems (BRCD) and The Competition Head to Head Analysis
Brocade Communications Systems (NASDAQ: BRCD) is one of 67 public companies in the “Communications & Networking” industry, but how does it weigh in compared to its peers? We will compare Brocade Communications Systems to similar companies based on the strength of its analyst recommendations, dividends, institutional ownership, profitability, valuation, risk and earnings.
This is a summary of current ratings for Brocade Communications Systems and its peers, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Brocade Communications Systems||1||7||0||0||1.88|
|Brocade Communications Systems Competitors||368||2400||3935||157||2.57|
Brocade Communications Systems presently has a consensus price target of $12.45, indicating a potential upside of 4.62%. As a group, “Communications & Networking” companies have a potential upside of 23.38%. Given Brocade Communications Systems’ peers stronger consensus rating and higher probable upside, analysts clearly believe Brocade Communications Systems has less favorable growth aspects than its peers.
This table compares Brocade Communications Systems and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Brocade Communications Systems||1.30%||5.42%||2.84%|
|Brocade Communications Systems Competitors||-2.11%||-5.84%||0.35%|
Insider & Institutional Ownership
83.4% of Brocade Communications Systems shares are owned by institutional investors. Comparatively, 64.8% of shares of all “Communications & Networking” companies are owned by institutional investors. 1.8% of Brocade Communications Systems 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 endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Brocade Communications Systems pays an annual dividend of $0.22 per share and has a dividend yield of 1.8%. Brocade Communications Systems pays out 314.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Communications & Networking” companies pay a dividend yield of 2.0% and pay out 41.5% of their earnings in the form of a dividend. Brocade Communications Systems lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.
Valuation and Earnings
This table compares Brocade Communications Systems and its peers revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Brocade Communications Systems||$2.34 billion||$354.21 million||170.00|
|Brocade Communications Systems Competitors||$2.88 billion||$624.22 million||27.40|
Brocade Communications Systems’ peers have higher revenue and earnings than Brocade Communications Systems. Brocade Communications Systems is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Volatility & Risk
Brocade Communications Systems has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500. Comparatively, Brocade Communications Systems’ peers have a beta of 1.17, suggesting that their average share price is 17% more volatile than the S&P 500.
Brocade Communications Systems peers beat Brocade Communications Systems on 10 of the 15 factors compared.
Brocade Communications Systems Company Profile
Brocade Communications Systems, Inc. (Brocade) is a supplier of networking hardware, software and services, including storage area networking (SAN) solutions and Internet protocol (IP) networking solutions for businesses and organizations of various types and sizes. The Company operates through three segments: SAN Products, IP Networking Products and Global Services. The SAN Products segment includes infrastructure products and solutions that help customers develop and deploy storage and server consolidation, disaster recovery and data security. The IP Networking Products segment includes Layer 2 and Layer 3 Ethernet switches, and routers to connect users over private and public networks. The Global Services segment includes break or fix maintenance, installation, consulting, network management and software maintenance, and post-contract customer support. Its products enable customers to deploy architectures and technologies, including virtualization and cloud computing.
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