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

Insider and Institutional Ownership

17.0% of EXFO shares are held by institutional investors. Comparatively, 58.1% of shares of all “Testing & Measuring Equipment” companies are held by institutional investors. 20.0% of EXFO shares are held by insiders. Comparatively, 10.4% of shares of all “Testing & Measuring Equipment” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings for EXFO and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EXFO 0 4 1 0 2.20
EXFO Competitors 53 411 508 10 2.48

EXFO currently has a consensus target price of $5.35, indicating a potential upside of 30.49%. As a group, “Testing & Measuring Equipment” companies have a potential downside of 30.30%. Given EXFO’s higher probable upside, analysts clearly believe EXFO is more favorable than its competitors.

Volatility & Risk

EXFO has a beta of 0.43, suggesting that its stock price is 57% less volatile than the S&P 500. Comparatively, EXFO’s competitors have a beta of 0.77, suggesting that their average stock price is 23% less volatile than the S&P 500.

Profitability

This table compares EXFO and its competitors’ 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 -4.77% 2.91% -0.47%

Valuation and Earnings

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

Gross Revenue NetIncome Price/Earnings Ratio
EXFO $243.30 million $850,000.00 205.10
EXFO Competitors $554.48 million $61.00 million 114.94

EXFO’s competitors have higher revenue and earnings than EXFO. EXFO 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.

Summary

EXFO competitors beat EXFO on 8 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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