Financial Analysis: Meru Networks (MERU) vs. Its Peers
Meru Networks (NASDAQ: MERU) is one of 34 publicly-traded companies in the “Wireless Telecommunications Services” industry, but how does it weigh in compared to its competitors? We will compare Meru Networks to similar companies based on the strength of its dividends, earnings, analyst recommendations, risk, profitability, valuation and institutional ownership.
Volatility and Risk
Meru Networks has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500. Comparatively, Meru Networks’ competitors have a beta of 0.82, suggesting that their average stock price is 18% less volatile than the S&P 500.
This table compares Meru Networks and its competitors top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Meru Networks Competitors||$27.09 billion||$1.51 billion||-213.43|
Meru Networks’ competitors have higher revenue and earnings than Meru Networks. Meru Networks is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
Insider and Institutional Ownership
40.3% of shares of all “Wireless Telecommunications Services” companies are held by institutional investors. 12.5% of shares of all “Wireless Telecommunications Services” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This table compares Meru Networks and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Meru Networks Competitors||-313.97%||-3.43%||-9.55%|
This is a summary of recent ratings and recommmendations for Meru Networks and its competitors, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Meru Networks Competitors||522||1701||1878||62||2.36|
As a group, “Wireless Telecommunications Services” companies have a potential upside of 31.95%. Given Meru Networks’ competitors higher probable upside, analysts clearly believe Meru Networks has less favorable growth aspects than its competitors.
Meru Networks competitors beat Meru Networks on 5 of the 8 factors compared.
About Meru Networks
Meru Networks, Inc. (Meru) develops and markets a virtualized Wireless Local Area Network (WLAN) solution. The Company’s solution is built around its System Director Operating System, which runs on its controllers and access points. The Company offers additional products designed to deliver network management, diagnostics and security. The Company also offers support services related to its products, professional services, and training. Its products and services are sold through value added resellers, and distributors, as well as its sales force. Its System Director Operating System forms the core of its virtualized WLAN solution. It provides a family of controllers that run its System Director Operating System and work in conjunction with its access points. Its Wireless Fidelity (Wi-Fi) certified access points provide network connectivity for wireless devices. Its bring-your-own-device (BYOD) and policy management solutions are designed to automate secure guest access.
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