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

Volatility & Risk

Gigamon has a beta of 1.46, meaning that its share price is 46% more volatile than the S&P 500. Comparatively, Gigamon’s rivals have a beta of 1.01, meaning that their average share price is 1% more volatile than the S&P 500.

Earnings & Valuation

This table compares Gigamon and its rivals top-line 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 rivals have higher revenue and earnings than Gigamon. Gigamon 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.

Profitability

This table compares Gigamon and its rivals’ 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 -44.22% -25.68% -9.50%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Gigamon and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gigamon 0 9 1 0 2.10
Gigamon Competitors 277 2082 4404 86 2.63

Gigamon currently has a consensus target price of $45.35, suggesting a potential upside of 17.79%. As a group, “Software” companies have a potential upside of 1.59%. Given Gigamon’s higher possible upside, equities analysts plainly believe Gigamon is more favorable than its rivals.

Institutional and Insider Ownership

99.1% of Gigamon shares are owned by institutional investors. Comparatively, 57.8% of shares of all “Software” companies are owned by institutional investors. 4.5% of Gigamon shares are owned by company insiders. Comparatively, 19.3% of shares of all “Software” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Gigamon Company Profile

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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