Alcatel Lucent (NYSE: ALU) is one of 64 public companies in the “Communications & Networking” industry, but how does it compare to its competitors? We will compare Alcatel Lucent to similar companies based on the strength of its risk, profitability, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Insider and Institutional Ownership

62.0% of shares of all “Communications & Networking” companies are owned by institutional investors. 13.3% of shares of all “Communications & Networking” companies are owned 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.

Valuation and Earnings

This table compares Alcatel Lucent and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Alcatel Lucent N/A N/A 43.25
Alcatel Lucent Competitors $3.31 billion $373.33 million -71.21

Alcatel Lucent’s competitors have higher revenue and earnings than Alcatel Lucent. Alcatel Lucent 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.

Risk and Volatility

Alcatel Lucent has a beta of 2.05, meaning that its stock price is 105% more volatile than the S&P 500. Comparatively, Alcatel Lucent’s competitors have a beta of 1.18, meaning that their average stock price is 18% more volatile than the S&P 500.

Profitability

This table compares Alcatel Lucent and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alcatel Lucent 14.83% 86.14% 10.96%
Alcatel Lucent Competitors 0.31% -7.49% 0.80%

Analyst Recommendations

This is a breakdown of recent recommendations for Alcatel Lucent and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alcatel Lucent 0 0 0 0 N/A
Alcatel Lucent Competitors 398 2545 4105 167 2.56

As a group, “Communications & Networking” companies have a potential upside of 14.09%. Given Alcatel Lucent’s competitors higher possible upside, analysts clearly believe Alcatel Lucent has less favorable growth aspects than its competitors.

Alcatel Lucent Company Profile

Alcatel Lucent SA is a provider of Internet protocol (IP) networking, ultra-broadband access and cloud technology solutions. The Company operates through two segments for the networks business. The Ultra Broadband Networks segment consists of Mobile Networks and Fixed Networks business groups. The IP Networks and Applications segment consists of Internet protocol (IP)/Optical Networks and Applications and Analytics business groups. Its other segment consists of businesses run as separate operations (Alcatel Submarine Networks and Radio Frequency Systems (RFS)). The Company offers a range of solutions, including Communications and collaboration, IP Core Routing, IP/optical integration, long term evolution (LTE) Ultra-Broadband, Software-defined networking and Vplus. The Company offers a range of consulting, managed, maintenance and professional services, including Bell Labs Consulting and Build, Operate and Manage (BOM) Solution for Mobility Networks. The main shareholder is Nokia.

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