Aerohive Networks (NYSE: HIVE) is one of 67 public companies in the “Communications & Networking” industry, but how does it compare to its peers? We will compare Aerohive Networks to related businesses based on the strength of its earnings, risk, dividends, institutional ownership, profitability, analyst recommendations and valuation.

Insider & Institutional Ownership

44.7% of Aerohive Networks shares are owned by institutional investors. Comparatively, 64.1% of shares of all “Communications & Networking” companies are owned by institutional investors. 26.2% of Aerohive Networks shares are owned by company insiders. Comparatively, 13.4% of shares of all “Communications & Networking” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Aerohive Networks and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aerohive Networks 0 1 4 0 2.80
Aerohive Networks Competitors 369 2415 3947 158 2.57

Aerohive Networks presently has a consensus target price of $6.31, suggesting a potential upside of 62.21%. As a group, “Communications & Networking” companies have a potential upside of 22.03%. Given Aerohive Networks’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Aerohive Networks is more favorable than its peers.

Valuation and Earnings

This table compares Aerohive Networks and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Aerohive Networks $160.72 million -$23.73 million -6.82
Aerohive Networks Competitors $2.88 billion $624.22 million 28.49

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

Risk and Volatility

Aerohive Networks has a beta of 1.59, suggesting that its share price is 59% more volatile than the S&P 500. Comparatively, Aerohive Networks’ peers have a beta of 1.17, suggesting that their average share price is 17% more volatile than the S&P 500.

Profitability

This table compares Aerohive Networks and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aerohive Networks -18.58% -107.93% -21.00%
Aerohive Networks Competitors -2.26% -6.36% 0.17%

Summary

Aerohive Networks peers beat Aerohive Networks on 7 of the 12 factors compared.

Aerohive Networks Company Profile

Aerohive Networks, Inc. together with its subsidiaries, has designed and developed a cloud-managed mobile networking platform that enables enterprises to deploy and manage a mobile-centric network edge. Its portfolio of products and solutions is built around sets of technologies and solutions, which include Enterprise Cloud Networking, Wireless Fidelity (Wi-Fi) Connectivity and Application and Insights. It conducts its business in geographic regions, including Americas; Europe, the Middle East and Africa, and Asia Pacific. Its product portfolio includes hardware products, cloud-based network management and applications, and support services. Its hardware products include access points, branch routers and access switches. Its hardware products are developed by its hardware design team working in conjunction with original design manufacturer partners, and leverage the commercially available Wi-Fi radios, network processors, crypto accelerators and switching chips.

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