Analyzing Emulex (ELX) and Its Competitors

Emulex (NYSE: ELX) is one of 67 publicly-traded 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 analyst recommendations, dividends, earnings, valuation, risk, institutional ownership and profitability.

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 -3.21% -9.42% -0.97%

Valuation and Earnings

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 $3.31 billion $373.33 million -90.41

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.

Analyst Ratings

This is a breakdown of current ratings and price targets 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 458 2615 4171 171 2.55

As a group, “Communications & Networking” companies have a potential upside of 14.47%. Given Emulex’s peers higher probable upside, analysts clearly believe Emulex has less favorable growth aspects than its peers.

Institutional & Insider Ownership

60.1% of shares of all “Communications & Networking” companies are held by institutional investors. 13.7% of shares of all “Communications & Networking” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

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

About Emulex

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).

Receive News & Ratings for Emulex Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Emulex and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply