Mentor Graphics Corp (NASDAQ: MENT) is one of 113 publicly-traded companies in the “Software” industry, but how does it compare to its competitors? We will compare Mentor Graphics Corp to related companies based on the strength of its risk, earnings, valuation, profitability, dividends, analyst recommendations and institutional ownership.

Dividends

Mentor Graphics Corp pays an annual dividend of $0.22 per share and has a dividend yield of 0.6%. Mentor Graphics Corp 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 91.2% of their earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
Mentor Graphics Corp 25.76% 37.83% 23.54%
Mentor Graphics Corp Competitors -47.16% -26.21% -9.90%

Earnings and Valuation

This table compares Mentor Graphics Corp and its competitors revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Mentor Graphics Corp N/A N/A 29.56
Mentor Graphics Corp Competitors $2.23 billion $415.57 million 326.32

Mentor Graphics Corp’s competitors have higher revenue and earnings than Mentor Graphics Corp. Mentor Graphics Corp 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.

Institutional and Insider Ownership

100.0% of Mentor Graphics Corp shares are owned by institutional investors. Comparatively, 57.0% of shares of all “Software” companies are owned by institutional investors. 2.8% of Mentor Graphics Corp shares are owned by insiders. Comparatively, 19.1% of shares of all “Software” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Mentor Graphics Corp and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mentor Graphics Corp 0 1 0 0 2.00
Mentor Graphics Corp Competitors 283 2086 4440 86 2.63

Mentor Graphics Corp presently has a consensus target price of $37.25, suggesting a potential upside of 0.00%. As a group, “Software” companies have a potential upside of 3.83%. Given Mentor Graphics Corp’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Mentor Graphics Corp has less favorable growth aspects than its competitors.

Summary

Mentor Graphics Corp competitors beat Mentor Graphics Corp on 7 of the 12 factors compared.

About Mentor Graphics Corp

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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