EXFO (NASDAQ: EXFO) is one of 29 publicly-traded companies in the “Testing & Measuring Equipment” industry, but how does it compare to its rivals? We will compare EXFO to related companies based on the strength of its dividends, institutional ownership, profitability, earnings, analyst recommendations, valuation and risk.

Insider & Institutional Ownership

17.0% of EXFO shares are held by institutional investors. Comparatively, 58.2% of shares of all “Testing & Measuring Equipment” companies are held by institutional investors. 20.0% of EXFO shares are held by company insiders. Comparatively, 10.4% of shares of all “Testing & Measuring Equipment” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

EXFO has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500. Comparatively, EXFO’s rivals have a beta of 0.82, indicating that their average stock price is 18% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for EXFO and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EXFO 0 4 1 0 2.20
EXFO Competitors 49 400 500 9 2.49

EXFO currently has a consensus price target of $5.50, indicating a potential upside of 37.50%. As a group, “Testing & Measuring Equipment” companies have a potential downside of 21.60%. Given EXFO’s higher possible upside, analysts plainly believe EXFO is more favorable than its rivals.

Valuation and Earnings

This table compares EXFO and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
EXFO $243.30 million $20.63 million 200.10
EXFO Competitors $481.50 million $95.60 million 2.17

EXFO’s rivals have higher revenue and earnings than EXFO. EXFO is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares EXFO and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EXFO 0.35% 5.26% 3.99%
EXFO Competitors -4.72% 2.86% -0.46%

Summary

EXFO rivals beat EXFO on 7 of the 13 factors compared.

About EXFO

EXFO Inc is a Canada-based company, which provides communications service providers (CSPs) and data center, cloud and Web-scale operators with field test, service assurance and analytics solutions to ensure the deployment, maintenance and management of physical, virtual, fixed and mobile networks. It focuses on network infrastructures: fourth generation (4G)/long-term evolution (LTE), wireless backhaul, small cells and distributed antenna systems (DAS), 100G network upgrades and fiber-to-the-home (FTTH)/fiber-to-the-curb (FTTC)/fiber-to-the-node (FTTN) deployments. It offers a range of wire line and wireless tests, service assurance and analytics solutions to the global telecommunications industry. Its products include TestFlow; LTB-8 platform; a family of optical time domain reflect meters (OTDRs); iSAM; MaxTester-940 Fiber Certifier optical loss test set (OLTS) for data center and enterprise markets, and the G.fast handheld test set.

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