Head to Head Analysis: National Instruments Corporation (NATI) and The Competition
National Instruments Corporation (NASDAQ: NATI) is one of 115 public companies in the “Software” industry, but how does it weigh in compared to its peers? We will compare National Instruments Corporation to similar companies based on the strength of its dividends, profitability, earnings, institutional ownership, risk, valuation and analyst recommendations.
Risk & Volatility
National Instruments Corporation has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, National Instruments Corporation’s peers have a beta of 0.98, indicating that their average stock price is 2% less volatile than the S&P 500.
This table compares National Instruments Corporation and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|National Instruments Corporation||8.11%||9.81%||7.36%|
|National Instruments Corporation Competitors||-39.84%||-44.00%||-9.88%|
Valuation & Earnings
This table compares National Instruments Corporation and its peers gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|National Instruments Corporation||$1.25 billion||$189.72 million||52.67|
|National Instruments Corporation Competitors||$1.55 billion||$457.90 million||42.15|
National Instruments Corporation’s peers have higher revenue and earnings than National Instruments Corporation. National Instruments Corporation is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
This is a breakdown of current ratings for National Instruments Corporation and its peers, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|National Instruments Corporation||0||1||2||0||2.67|
|National Instruments Corporation Competitors||388||2299||4369||115||2.59|
National Instruments Corporation presently has a consensus price target of $38.33, suggesting a potential downside of 6.69%. As a group, “Software” companies have a potential upside of 9.64%. Given National Instruments Corporation’s peers higher probable upside, analysts plainly believe National Instruments Corporation has less favorable growth aspects than its peers.
National Instruments Corporation pays an annual dividend of $0.84 per share and has a dividend yield of 2.0%. National Instruments Corporation pays out 107.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Software” companies pay a dividend yield of 1.1% and pay out 63.3% of their earnings in the form of a dividend.
Insider and Institutional Ownership
80.4% of National Instruments Corporation shares are held by institutional investors. Comparatively, 58.4% of shares of all “Software” companies are held by institutional investors. 9.9% of National Instruments Corporation shares are held by company insiders. Comparatively, 20.0% of shares of all “Software” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
National Instruments Corporation beats its peers on 8 of the 15 factors compared.
National Instruments Corporation Company Profile
National Instruments Corporation (NI) designs, manufactures and sells systems to engineers and scientists. The Company offers a line of measurement, automation and control products. It offers products, technology and services, which include system design software, programming tools, application software, modular hardware products and related driver software, production test systems, NI education platform, software products for teaching and hardware products for teaching. It also offers NI Services, including hardware services and maintenance, software maintenance services, and training and certification. Its products are used across various industries in a range of applications, including research and development, simulation and modeling, prototype and validation, production testing and industrial control and field and factory service and repair. It serves various industries and applications, such as consumer electronics, commercial aerospace, telecommunications and others.
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