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 similar businesses based on the strength of its profitability, institutional ownership, earnings, dividends, valuation, risk and analyst recommendations.

Risk & Volatility

EXFO has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500. Comparatively, EXFO’s rivals have a beta of 0.82, suggesting that their average stock price is 18% less volatile than the S&P 500.

Institutional & Insider Ownership

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

Analyst Ratings

This is a summary of recent ratings and price targets for EXFO and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EXFO 0 4 1 0 2.20
EXFO Competitors 48 391 496 9 2.49

EXFO currently has a consensus target price of $5.70, suggesting a potential upside of 42.50%. As a group, “Testing & Measuring Equipment” companies have a potential downside of 19.21%. Given EXFO’s higher probable upside, analysts clearly believe EXFO is more favorable than its rivals.

Valuation & Earnings

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

Gross Revenue EBITDA Price/Earnings Ratio
EXFO $243.18 million $17.91 million 100.03
EXFO Competitors $481.50 million $95.49 million -3.35

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 0.93% 3.25% 2.47%
EXFO Competitors -4.91% 2.03% -0.79%

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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