Mentor Graphics (NASDAQ: MENT) is one of 110 public companies in the “Software” industry, but how does it compare to its competitors? We will compare Mentor Graphics to related companies based on the strength of its analyst recommendations, dividends, institutional ownership, valuation, risk, profitability and earnings.

Dividends

Mentor Graphics pays an annual dividend of $0.22 per share and has a dividend yield of 0.6%. Mentor Graphics pays out 17.5% of its earnings in the form of a dividend. As a group, “Software” companies pay a dividend yield of 1.1% and pay out 89.1% of their earnings in the form of a dividend.

Earnings and Valuation

This table compares Mentor Graphics and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Mentor Graphics N/A N/A 29.56
Mentor Graphics Competitors $2.20 billion $401.02 million 441.58

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

Profitability

This table compares Mentor Graphics and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mentor Graphics 25.76% 37.83% 23.54%
Mentor Graphics Competitors -46.91% -25.16% -7.40%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Mentor Graphics and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mentor Graphics 0 0 0 0 N/A
Mentor Graphics Competitors 290 2103 4440 90 2.63

As a group, “Software” companies have a potential upside of 13.10%. Given Mentor Graphics’ competitors higher possible upside, analysts clearly believe Mentor Graphics has less favorable growth aspects than its competitors.

Institutional & Insider Ownership

100.0% of Mentor Graphics shares are held by institutional investors. Comparatively, 57.8% of shares of all “Software” companies are held by institutional investors. 2.8% of Mentor Graphics shares are held by company insiders. Comparatively, 17.9% of shares of all “Software” companies are held 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

Mentor Graphics beats its competitors on 5 of the 9 factors compared.

Mentor Graphics Company Profile

Mentor Graphics Corporation provides software and hardware design solutions, as well as consulting and customer support services. The Company markets its products and services across the world, primarily to various companies in the communications, computer, consumer electronics, semiconductor, networking, multimedia, military and aerospace and transportation industries. The electronic components and systems that its customers create and test with its products include integrated circuits (ICs), printed circuit boards (PCBs), field programmable gate arrays (FPGAs), embedded systems and software, and wire harness systems. Its products are used in the design and development of a diverse set of electronic products, including transportation electronics, Internet of things (IoT) platforms and systems, computers, medical devices, industrial electronics, manufacturing systems, and wireless communications infrastructure.

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