Mentor Graphics (NASDAQ: MENT) is one of 113 publicly-traded companies in the “Software” industry, but how does it compare to its rivals? We will compare Mentor Graphics to related businesses based on the strength of its dividends, institutional ownership, earnings, analyst recommendations, risk, valuation and profitability.

Valuation & Earnings

This table compares Mentor Graphics and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Mentor Graphics N/A N/A 29.56
Mentor Graphics Competitors $2.20 billion $401.02 million 385.52

Mentor Graphics’ rivals have higher revenue and earnings than Mentor Graphics. Mentor Graphics 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.

Analyst Ratings

This is a breakdown of recent ratings for Mentor Graphics and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mentor Graphics 0 0 0 0 N/A
Mentor Graphics Competitors 290 2109 4489 90 2.63

As a group, “Software” companies have a potential upside of 15.24%. Given Mentor Graphics’ rivals higher possible upside, analysts plainly believe Mentor Graphics has less favorable growth aspects than its rivals.

Dividends

Mentor Graphics pays an annual dividend of $0.22 per share and has a dividend yield of 0.6%. Mentor Graphics pays out 17.5% of its earnings in the form of a dividend. As a group, “Software” companies pay a dividend yield of 1.1% and pay out 89.3% of their earnings in the form of a dividend.

Profitability

This table compares Mentor Graphics and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mentor Graphics 25.76% 37.83% 23.54%
Mentor Graphics Competitors -45.62% -24.43% -7.28%

Insider & Institutional Ownership

100.0% of Mentor Graphics shares are held by institutional investors. Comparatively, 57.8% of shares of all “Software” companies are held by institutional investors. 2.8% of Mentor Graphics shares are held by company insiders. Comparatively, 18.0% of shares of all “Software” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Mentor Graphics beats its rivals on 5 of the 9 factors compared.

Mentor Graphics Company Profile

Mentor Graphics Corporation provides software and hardware design solutions, as well as consulting and customer support services. The Company markets its products and services across the world, primarily to various companies in the communications, computer, consumer electronics, semiconductor, networking, multimedia, military and aerospace and transportation industries. The electronic components and systems that its customers create and test with its products include integrated circuits (ICs), printed circuit boards (PCBs), field programmable gate arrays (FPGAs), embedded systems and software, and wire harness systems. Its products are used in the design and development of a diverse set of electronic products, including transportation electronics, Internet of things (IoT) platforms and systems, computers, medical devices, industrial electronics, manufacturing systems, and wireless communications infrastructure.

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