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

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 -2.16% -5.92% 0.37%

Earnings & Valuation

This table compares Aerohive Networks and its peers top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Aerohive Networks $160.72 million -$23.73 million -6.95
Aerohive Networks Competitors $2.41 billion $618.60 million 28.71

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.

Analyst Recommendations

This is a summary of current recommendations and price targets 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 371 2419 3961 159 2.57

Aerohive Networks currently has a consensus price target of $6.31, suggesting a potential upside of 59.34%. As a group, “Communications & Networking” companies have a potential upside of 22.00%. Given Aerohive Networks’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Aerohive Networks is more favorable than its peers.

Institutional and Insider Ownership

44.7% of Aerohive Networks shares are held by institutional investors. Comparatively, 64.2% of shares of all “Communications & Networking” companies are held by institutional investors. 26.2% of Aerohive Networks shares are held by insiders. Comparatively, 13.4% of shares of all “Communications & Networking” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Aerohive Networks has a beta of 1.58, suggesting that its share price is 58% more volatile than the S&P 500. Comparatively, Aerohive Networks’ peers have a beta of 1.14, suggesting that their average share price is 14% more volatile than the S&P 500.

Summary

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

About Aerohive Networks

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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