NeoPhotonics Corporation (NYSE: NPTN) is one of 24 publicly-traded companies in the “Integrated Circuits” industry, but how does it contrast to its peers? We will compare NeoPhotonics Corporation to similar businesses based on the strength of its dividends, earnings, valuation, profitability, analyst recommendations, risk and institutional ownership.

Profitability

This table compares NeoPhotonics Corporation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NeoPhotonics Corporation -7.28% -9.43% -5.36%
NeoPhotonics Corporation Competitors -7.42% -8.48% -2.79%

Earnings & Valuation

This table compares NeoPhotonics Corporation and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
NeoPhotonics Corporation $358.05 million $338,000.00 -9.44
NeoPhotonics Corporation Competitors $618.04 million $157.40 million 17.36

NeoPhotonics Corporation’s peers have higher revenue and earnings than NeoPhotonics Corporation. NeoPhotonics Corporation 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.

Institutional & Insider Ownership

85.3% of NeoPhotonics Corporation shares are owned by institutional investors. Comparatively, 59.5% of shares of all “Integrated Circuits” companies are owned by institutional investors. 17.3% of NeoPhotonics Corporation shares are owned by company insiders. Comparatively, 15.5% of shares of all “Integrated Circuits” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for NeoPhotonics Corporation and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NeoPhotonics Corporation 0 2 5 1 2.88
NeoPhotonics Corporation Competitors 86 448 946 65 2.64

NeoPhotonics Corporation presently has a consensus target price of $9.97, indicating a potential upside of 70.41%. As a group, “Integrated Circuits” companies have a potential upside of 3.15%. Given NeoPhotonics Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe NeoPhotonics Corporation is more favorable than its peers.

Volatility & Risk

NeoPhotonics Corporation has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500. Comparatively, NeoPhotonics Corporation’s peers have a beta of 0.85, suggesting that their average share price is 15% less volatile than the S&P 500.

Summary

NeoPhotonics Corporation beats its peers on 8 of the 12 factors compared.

NeoPhotonics Corporation Company Profile

NeoPhotonics Corporation develops, manufactures and markets optoelectronic products that transmit, receive and switch digital optical signals for communications networks. The Company develops and manufactures Transmitter Products, Receiver Products and Switch Products that are used in ultra-high speed digital optical communications, high speed switching and provisioning, and access connections for wireless and fiber-to-the-home communications networks. The Company’s products are categorized into groups, including High Speed Products and Network Products and Solutions. The High Speed Products includes products designed for 100G and beyond for telecommunication and datacenter or content provider networks and applications. Its Network Products and Solutions consist of various products designed for applications below 100G, and include 40G products. The Company combines its transmitter and receiver products into Transceiver modules.

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