Extreme Networks (EXTR) versus Its Competitors Financial Contrast

Extreme Networks (NASDAQ: EXTR) is one of 25 public companies in the “Computer & office equipment” industry, but how does it weigh in compared to its competitors? We will compare Extreme Networks to related businesses based on the strength of its valuation, institutional ownership, earnings, dividends, analyst recommendations, profitability and risk.

Risk and Volatility

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Extreme Networks has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500. Comparatively, Extreme Networks’ competitors have a beta of 0.78, meaning that their average share price is 22% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Extreme Networks and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Extreme Networks 0 0 5 0 3.00
Extreme Networks Competitors 308 1739 2314 86 2.49

Extreme Networks presently has a consensus target price of $16.70, indicating a potential upside of 60.12%. As a group, “Computer & office equipment” companies have a potential upside of 6.79%. Given Extreme Networks’ stronger consensus rating and higher possible upside, analysts clearly believe Extreme Networks is more favorable than its competitors.

Profitability

This table compares Extreme Networks and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Extreme Networks -2.72% 44.24% 8.63%
Extreme Networks Competitors -2.03% -4.50% 3.28%

Valuation & Earnings

This table compares Extreme Networks and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Extreme Networks $598.12 million -$8.51 million 30.68
Extreme Networks Competitors $12.01 billion $456.58 million 18.78

Extreme Networks’ competitors have higher revenue and earnings than Extreme Networks. Extreme Networks is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Insider & Institutional Ownership

79.5% of Extreme Networks shares are owned by institutional investors. Comparatively, 54.5% of shares of all “Computer & office equipment” companies are owned by institutional investors. 1.9% of Extreme Networks shares are owned by company insiders. Comparatively, 13.3% of shares of all “Computer & office equipment” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Extreme Networks beats its competitors on 8 of the 13 factors compared.

Extreme Networks Company Profile

Extreme Networks, Inc. provides software-driven networking solutions for enterprise customers worldwide. The company designs, develops, and manufactures wired and wireless network infrastructure equipment; and develops the software for network management, policy, analytics, security, and access controls. It offers edge/access Ethernet switching systems that delivers Ethernet connectivity for edge of the network; aggregation/core Ethernet switching systems for aggregation, top-of-rack, and campus core environments; data center switching systems for enterprises and cloud data centers; and wireless access point products, as well as distributed Wi-Fi networks. The company also provides ExtremeControl, a network access control solution that allows the enterprises to unify the security of their wired and wireless networks with visibility and control over users, devices, and applications; and ExtremeAnalytics, a network-powered application analytics and optimization solution, which captures, aggregates, analyzes, correlates, and reports network data that enables in decision making and enhancing business performance. In addition, it offers ExtremeCloud, a wired and wireless cloud network management solution, which offers advanced visibility and control over users and applications. The company sells and markets its products through distributors, resellers, and field sales organizations. It serves enterprises and organizations in education, healthcare, manufacturing, hospitality, transportation, and logistics, as well as government agencies. Extreme Networks, Inc. was founded in 1996 and is headquartered in San Jose, California.

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