Gigamon (NYSE: GIMO) is one of 121 publicly-traded companies in the “Software” industry, but how does it compare to its peers? We will compare Gigamon to related businesses based on the strength of its risk, analyst recommendations, earnings, institutional ownership, valuation, profitability and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
Gigamon -0.32% -0.55% -0.38%
Gigamon Competitors -44.75% -25.92% -9.64%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Gigamon and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gigamon 0 9 1 0 2.10
Gigamon Competitors 277 2079 4391 86 2.63

Gigamon currently has a consensus price target of $45.35, indicating a potential upside of 17.79%. As a group, “Software” companies have a potential upside of 1.55%. Given Gigamon’s higher probable upside, analysts plainly believe Gigamon is more favorable than its peers.

Insider & Institutional Ownership

99.1% of Gigamon shares are held by institutional investors. Comparatively, 60.3% of shares of all “Software” companies are held by institutional investors. 4.5% of Gigamon shares are held by insiders. Comparatively, 17.8% of shares of all “Software” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Gigamon and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Gigamon $307.25 million $10.55 million -1,282.91
Gigamon Competitors $1.52 billion $446.84 million 12.26

Gigamon’s peers have higher revenue and earnings than Gigamon. Gigamon 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.

Volatility and Risk

Gigamon has a beta of 1.5, suggesting that its stock price is 50% more volatile than the S&P 500. Comparatively, Gigamon’s peers have a beta of 0.98, suggesting that their average stock price is 2% less volatile than the S&P 500.

About Gigamon

Gigamon Inc. offers a solution that delivers visibility and control of data-in-motion traversing enterprise, federal and service provider networks. The Company’s Visibility Platform consists of a distributed system of nodes (that in combination establish a Visibility Fabric). The Visibility Platform includes physical appliances and virtual nodes that can be deployed in data centers, central offices, virtualized/private cloud/public cloud environments, and small form-factor remote site appliances, which in combination enable pervasive visibility of network infrastructures. Its GigaSECURE Security Delivery Platform enables security teams and information technology (IT) personnel to gain visibility into their IT infrastructure by forwarding selected traffic of interest from network, server and remote location infrastructure to security, management, analysis and compliance tools in a manner that is optimized for specific uses or functions.

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