Alcatel Lucent (ALU) vs. Its Rivals Critical Survey
Alcatel Lucent (NYSE: ALU) is one of 63 publicly-traded companies in the “Communications & Networking” industry, but how does it contrast to its peers? We will compare Alcatel Lucent to similar companies based on the strength of its risk, profitability, earnings, institutional ownership, analyst recommendations, valuation and dividends.
This table compares Alcatel Lucent and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Alcatel Lucent Competitors||-0.75%||-7.97%||0.68%|
This is a breakdown of recent ratings for Alcatel Lucent and its peers, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Alcatel Lucent Competitors||377||2396||4003||161||2.57|
As a group, “Communications & Networking” companies have a potential upside of 16.79%. Given Alcatel Lucent’s peers higher possible upside, analysts plainly believe Alcatel Lucent has less favorable growth aspects than its peers.
Valuation and Earnings
This table compares Alcatel Lucent and its peers gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Alcatel Lucent Competitors||$3.31 billion||$373.33 million||-99.92|
Alcatel Lucent’s peers have higher revenue and earnings than Alcatel Lucent. Alcatel Lucent 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.
Institutional and Insider Ownership
61.9% of shares of all “Communications & Networking” companies are held by institutional investors. 12.4% of shares of all “Communications & Networking” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Risk & Volatility
Alcatel Lucent has a beta of 2.05, indicating that its stock price is 105% more volatile than the S&P 500. Comparatively, Alcatel Lucent’s peers have a beta of 1.15, indicating that their average stock price is 15% more volatile than the S&P 500.
About Alcatel Lucent
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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