Mellanox Technologies (MLNX) and Its Peers Financial Contrast

Mellanox Technologies (NASDAQ: MLNX) is one of 104 public companies in the “Semiconductors” industry, but how does it contrast to its peers? We will compare Mellanox Technologies to similar companies based on the strength of its institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Insider & Institutional Ownership

61.6% of Mellanox Technologies shares are owned by institutional investors. Comparatively, 65.3% of shares of all “Semiconductors” companies are owned by institutional investors. 6.1% of Mellanox Technologies shares are owned by company insiders. Comparatively, 6.7% of shares of all “Semiconductors” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Mellanox Technologies and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mellanox Technologies 2 5 2 0 2.00
Mellanox Technologies Competitors 910 4730 8610 358 2.58

Mellanox Technologies currently has a consensus price target of $50.86, suggesting a potential upside of 16.51%. As a group, “Semiconductors” companies have a potential upside of 9.30%. Given Mellanox Technologies’ higher possible upside, research analysts clearly believe Mellanox Technologies is more favorable than its peers.

Risk & Volatility

Mellanox Technologies has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500. Comparatively, Mellanox Technologies’ peers have a beta of 1.07, suggesting that their average stock price is 7% more volatile than the S&P 500.

Valuation & Earnings

This table compares Mellanox Technologies and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Mellanox Technologies $846.50 million $105.01 million 4,365.00
Mellanox Technologies Competitors $4.29 billion $1.35 billion 81.89

Mellanox Technologies’ peers have higher revenue and earnings than Mellanox Technologies. Mellanox Technologies 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 Mellanox Technologies and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mellanox Technologies 0.09% 5.93% 3.98%
Mellanox Technologies Competitors -46.16% 0.97% 0.59%

Summary

Mellanox Technologies peers beat Mellanox Technologies on 8 of the 13 factors compared.

Mellanox Technologies Company Profile

Mellanox Technologies, Ltd. is a fabless semiconductor company. The Company is an integrated supplier of interconnect products and solutions based on the InfiniBand and Ethernet standards. The Company operates in the development, manufacturing, marketing and sales of interconnect products segment. Its products facilitate data transmission between servers, storage systems, communications infrastructure equipment and other embedded systems. It operates its business globally and offers products to customers at various levels of integration. The products it offers include integrated circuits (ICs), adapter cards, switch systems, multi-core and network processors, cables, modules, software, services and accessories. Together these products form a networking solution, focused on computing, storage and communication applications used in multiple markets, including high-performance computing (HPC), cloud, Web 2.0, storage, financial services, and enterprise data center (EDC).

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