Financial Review: Emulex (ELX) versus Its Rivals

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

Profitability

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

Net Margins Return on Equity Return on Assets
Emulex -61.34% -54.64% -34.34%
Emulex Competitors -3.32% -9.67% -1.07%

Earnings and Valuation

This table compares Emulex and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Emulex N/A N/A -8.32
Emulex Competitors $3.38 billion $381.93 million -134.42

Emulex’s peers have higher revenue and earnings than Emulex. Emulex 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.

Institutional and Insider Ownership

62.7% of shares of all “Communications & Networking” companies are owned by institutional investors. 13.1% of shares of all “Communications & Networking” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Emulex 0 0 0 0 N/A
Emulex Competitors 410 2594 4134 170 2.56

As a group, “Communications & Networking” companies have a potential upside of 14.91%. Given Emulex’s peers higher possible upside, analysts plainly believe Emulex has less favorable growth aspects than its peers.

Summary

Emulex peers beat Emulex on 7 of the 8 factors compared.

Emulex Company Profile

Emulex Corporation (Emulex) is a provider of network connectivity, monitoring and management products. It provides solutions for networks that support enterprise, cloud, government and telecommunications sectors. The Company’s portfolio of input/output (I/O) connectivity offerings, including the line of Ethernet and Fiber Channel-based connectivity products, has been designed into server and storage solutions. Its monitoring and management solutions include its network visibility and recording products. The Company’s network connectivity, monitoring and management solutions are offered through two business segments: Connectivity Segment and the Visibility Segment. The Connectivity Segment comprises the Company’s Emulex products, and network connectivity products (NCP) and storage connectivity and other products (SCOP). Its Visibility Segment comprises its Network Visibility Products (NVP).

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