Analyzing Netgear (NTGR) & Its Peers
Netgear (NASDAQ: NTGR) is one of 26 publicly-traded companies in the “Telephone & telegraph apparatus” industry, but how does it weigh in compared to its peers? We will compare Netgear to similar companies based on the strength of its institutional ownership, risk, valuation, earnings, dividends, analyst recommendations and profitability.
Institutional and Insider Ownership
97.5% of Netgear shares are owned by institutional investors. Comparatively, 41.0% of shares of all “Telephone & telegraph apparatus” companies are owned by institutional investors. 6.2% of Netgear shares are owned by company insiders. Comparatively, 22.6% of shares of all “Telephone & telegraph apparatus” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This table compares Netgear and its peers revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Netgear||$1.41 billion||$19.43 million||26.25|
|Netgear Competitors||$662.53 million||$72.22 million||35.58|
Netgear has higher revenue, but lower earnings than its peers. Netgear is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
This is a breakdown of recent ratings for Netgear and its peers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Netgear presently has a consensus price target of $74.00, indicating a potential upside of 21.51%. As a group, “Telephone & telegraph apparatus” companies have a potential upside of 20.58%. Given Netgear’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Netgear is more favorable than its peers.
This table compares Netgear and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Netgear has a beta of 1.9, indicating that its share price is 90% more volatile than the S&P 500. Comparatively, Netgear’s peers have a beta of 4.42, indicating that their average share price is 342% more volatile than the S&P 500.
Netgear beats its peers on 8 of the 13 factors compared.
NETGEAR, Inc. designs, develops, and markets networking and Internet connected products for consumers, businesses, and service providers. The company operates in three segments: Arlo, Connected Home, and Small and Medium Business. It offers smart home/connected home/broadband access products, such as remote video security systems, broadband modems, WiFi gateways, WiFi hotspots, WiFi routers and home WiFi systems, WiFi range extenders, Powerline adapters and bridges, and WiFi network adapters. The company also provides Ethernet switches, wireless controllers and access points, unified storage products, and Internet security appliances for small and medium-sized businesses. It markets and sells its products through traditional retailers, online retailers, wholesale distributors, direct market resellers, value-added resellers, and broadband service providers in the Americas, Europe, the Middle-East, Africa, and the Asia Pacific. NETGEAR, Inc. was founded in 1996 and is headquartered in San Jose, California.
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