Plantronics (NYSE: PLT) is one of 66 publicly-traded companies in the “Communications & Networking” industry, but how does it weigh in compared to its peers? We will compare Plantronics to related businesses based on the strength of its institutional ownership, profitability, risk, dividends, analyst recommendations, earnings and valuation.

Risk & Volatility

Plantronics has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500. Comparatively, Plantronics’ peers have a beta of 1.14, indicating that their average share price is 14% more volatile than the S&P 500.

Dividends

Plantronics pays an annual dividend of $0.60 per share and has a dividend yield of 1.2%. Plantronics pays out 24.7% of its earnings in the form of a dividend. As a group, “Communications & Networking” companies pay a dividend yield of 1.9% and pay out 47.8% of their earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent ratings for Plantronics and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Plantronics 0 1 2 0 2.67
Plantronics Competitors 395 2562 4094 165 2.56

Plantronics currently has a consensus target price of $57.33, suggesting a potential upside of 11.37%. As a group, “Communications & Networking” companies have a potential upside of 15.74%. Given Plantronics’ peers higher probable upside, analysts clearly believe Plantronics has less favorable growth aspects than its peers.

Earnings & Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Plantronics $881.18 million $82.59 million 21.19
Plantronics Competitors $3.30 billion $346.31 million -143.38

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

Profitability

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

Net Margins Return on Equity Return on Assets
Plantronics 9.41% 20.12% 7.54%
Plantronics Competitors -3.90% -9.33% -1.05%

Institutional and Insider Ownership

91.0% of Plantronics shares are owned by institutional investors. Comparatively, 62.1% of shares of all “Communications & Networking” companies are owned by institutional investors. 3.2% of Plantronics shares are owned by insiders. Comparatively, 13.2% of shares of all “Communications & Networking” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Plantronics beats its peers on 9 of the 15 factors compared.

About Plantronics

Plantronics, Inc. (Plantronics) is engaged in the design, manufacture, and distribution of headsets for business and consumer applications, and other specialty products for the hearing impaired. The Company is a global designer, manufacturer and marketer of communications headsets, telephone headset systems, other communication endpoints and accessories for the business and consumer markets. The Company develops communication products for offices and contact centers, mobile devices, cordless phones, and computers and gaming consoles. Its product categories include Enterprise, which includes corded and cordless communication headsets, audio processors, and telephone systems, and Consumer, which includes Bluetooth and corded products for mobile device applications, personal computer (PC) and gaming headsets, and specialty products marketed for hearing impaired individuals. It offers its products under two brands: Plantronics and Clarity.

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