Alcatel Lucent (NYSE: ALU) is one of 66 public companies in the “Communications & Networking” industry, but how does it contrast to its rivals? We will compare Alcatel Lucent to related businesses based on the strength of its analyst recommendations, dividends, institutional ownership, risk, profitability, earnings and valuation.

Earnings and Valuation

This table compares Alcatel Lucent and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Alcatel Lucent N/A N/A 43.25
Alcatel Lucent Competitors $3.31 billion $373.34 million -119.12

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

Profitability

This table compares Alcatel Lucent and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alcatel Lucent 14.83% 86.14% 10.96%
Alcatel Lucent Competitors -3.30% -9.44% -1.03%

Risk and Volatility

Alcatel Lucent has a beta of 2.05, indicating that its stock price is 105% more volatile than the S&P 500. Comparatively, Alcatel Lucent’s rivals have a beta of 1.15, indicating that their average stock price is 15% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Alcatel Lucent and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alcatel Lucent 0 0 0 0 N/A
Alcatel Lucent Competitors 398 2569 4118 165 2.56

As a group, “Communications & Networking” companies have a potential upside of 16.64%. Given Alcatel Lucent’s rivals higher probable upside, analysts plainly believe Alcatel Lucent has less favorable growth aspects than its rivals.

Insider & Institutional Ownership

62.1% of shares of all “Communications & Networking” companies are owned by institutional investors. 12.4% of shares of all “Communications & Networking” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Alcatel Lucent Company Profile

Alcatel Lucent SA is a provider of Internet protocol (IP) networking, ultra-broadband access and cloud technology solutions. The Company operates through two segments for the networks business. The Ultra Broadband Networks segment consists of Mobile Networks and Fixed Networks business groups. The IP Networks and Applications segment consists of Internet protocol (IP)/Optical Networks and Applications and Analytics business groups. Its other segment consists of businesses run as separate operations (Alcatel Submarine Networks and Radio Frequency Systems (RFS)). The Company offers a range of solutions, including Communications and collaboration, IP Core Routing, IP/optical integration, long term evolution (LTE) Ultra-Broadband, Software-defined networking and Vplus. The Company offers a range of consulting, managed, maintenance and professional services, including Bell Labs Consulting and Build, Operate and Manage (BOM) Solution for Mobility Networks. The main shareholder is Nokia.

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