Acacia Communications (NASDAQ: ACIA) is one of 67 publicly-traded companies in the “Communications & Networking” industry, but how does it compare to its rivals? We will compare Acacia Communications to similar businesses based on the strength of its valuation, earnings, dividends, institutional ownership, profitability, analyst recommendations and risk.

Analyst Ratings

This is a breakdown of current ratings and price targets for Acacia Communications and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Acacia Communications 0 2 7 0 2.78
Acacia Communications Competitors 372 2425 3966 159 2.57

Acacia Communications currently has a consensus target price of $53.25, indicating a potential upside of 25.86%. As a group, “Communications & Networking” companies have a potential upside of 21.81%. Given Acacia Communications’ stronger consensus rating and higher probable upside, analysts clearly believe Acacia Communications is more favorable than its rivals.

Profitability

This table compares Acacia Communications and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Acacia Communications 29.65% 34.46% 28.99%
Acacia Communications Competitors -2.44% -6.11% 0.16%

Risk & Volatility

Acacia Communications has a beta of 2.9, meaning that its share price is 190% more volatile than the S&P 500. Comparatively, Acacia Communications’ rivals have a beta of 1.14, meaning that their average share price is 14% more volatile than the S&P 500.

Insider & Institutional Ownership

82.1% of Acacia Communications shares are owned by institutional investors. Comparatively, 64.2% of shares of all “Communications & Networking” companies are owned by institutional investors. 37.1% of Acacia Communications 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, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Acacia Communications and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Acacia Communications $471.30 million $112.56 million 12.52
Acacia Communications Competitors $2.41 billion $618.60 million 28.71

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

Summary

Acacia Communications beats its rivals on 9 of the 13 factors compared.

Acacia Communications Company Profile

Acacia Communications, Inc. provides high-speed coherent interconnect products. The Company’s products include a series of low-power coherent digital signal processor application-specific integrated circuits (DSP ASICs), and silicon photonic integrated circuits (silicon PICs), which it has integrated into families of optical interconnect modules with transmission speeds ranging from 100 to 400 gigabits per second (Gbps) for use in long-haul, metro and inter-data center markets. The Company is also developing optical interconnect modules that will enable transmission speeds of one terabit (1,000 gigabits) per second and above. The Company’s modules perform a majority of the digital signal processing and optical functions in optical interconnects. The Company’s coherent DSP ASICs are manufactured using complementary metal oxide semiconductor (CMOS), and its silicon PICs are manufactured using a CMOS-compatible process.

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