Ciena Corporation (NYSE: CIEN) is one of 67 publicly-traded companies in the “Communications & Networking” industry, but how does it weigh in compared to its peers? We will compare Ciena Corporation to related businesses based on the strength of its analyst recommendations, dividends, institutional ownership, profitability, earnings, risk and valuation.
Risk & Volatility
Ciena Corporation has a beta of 1.64, suggesting that its share price is 64% more volatile than the S&P 500. Comparatively, Ciena Corporation’s peers have a beta of 1.13, suggesting that their average share price is 13% more volatile than the S&P 500.
This table compares Ciena Corporation and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ciena Corporation Competitors||-3.13%||-7.20%||-0.35%|
Valuation and Earnings
This table compares Ciena Corporation and its peers revenue, earnings per share (EPS) and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Ciena Corporation||$2.60 billion||$72.58 million||21.67|
|Ciena Corporation Competitors||$3.30 billion||$346.42 million||-16.69|
Ciena Corporation’s peers have higher revenue and earnings than Ciena Corporation. Ciena Corporation 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.
This is a summary of recent ratings and target prices for Ciena Corporation and its peers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ciena Corporation Competitors||370||2231||3854||157||2.57|
Ciena Corporation presently has a consensus price target of $29.50, indicating a potential upside of 47.94%. As a group, “Communications & Networking” companies have a potential upside of 14.43%. Given Ciena Corporation’s stronger consensus rating and higher possible upside, research analysts plainly believe Ciena Corporation is more favorable than its peers.
Institutional and Insider Ownership
62.9% of shares of all “Communications & Networking” companies are owned by institutional investors. 1.5% of Ciena Corporation shares are owned by company insiders. Comparatively, 13.2% of shares of all “Communications & Networking” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Ciena Corporation beats its peers on 8 of the 13 factors compared.
Ciena Corporation Company Profile
Ciena Corporation is a network strategy and technology company, which provides solutions that enable a range of network operators to adopt communication architectures and deliver an array of services, relied upon by enterprise and consumer end users. It provides equipment, software and services that support the transport, switching, aggregation, service delivery and management of voice, video and data traffic on communications networks. It segments include Networking Platforms; Software and Software-Related Services, and Global Services. The Networking Platforms segment consists of Converged Packet Optical, Packet Networking and Optical Transport product portfolios. The software business is engaged in the development and licensing of element and network management software and software-related services that support its hardware offerings. It offers a suite of consulting and support services that help its customers to design, optimize, deploy and maintain their communications networks.
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