Sierra Wireless (NASDAQ: SWIR) is one of 61 public companies in the “Communications & Networking” industry, but how does it weigh in compared to its rivals? We will compare Sierra Wireless to similar companies based on the strength of its institutional ownership, profitability, risk, valuation, analyst recommendations, dividends and earnings.

Earnings and Valuation

This table compares Sierra Wireless and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Sierra Wireless $615.61 million $15.38 million 28.54
Sierra Wireless Competitors $3.31 billion $373.34 million -124.50

Sierra Wireless’ rivals have higher revenue and earnings than Sierra Wireless. Sierra Wireless 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 Sierra Wireless and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sierra Wireless 3.48% 9.32% 6.03%
Sierra Wireless Competitors -2.08% -9.37% -0.17%

Insider & Institutional Ownership

23.3% of Sierra Wireless shares are held by institutional investors. Comparatively, 62.1% of shares of all “Communications & Networking” companies are held by institutional investors. 2.0% of Sierra Wireless shares are held by insiders. Comparatively, 13.2% of shares of all “Communications & Networking” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Sierra Wireless has a beta of 3.17, suggesting that its stock price is 217% more volatile than the S&P 500. Comparatively, Sierra Wireless’ rivals have a beta of 1.17, suggesting that their average stock price is 17% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Sierra Wireless and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sierra Wireless 0 9 3 0 2.25
Sierra Wireless Competitors 382 2402 3945 161 2.56

Sierra Wireless currently has a consensus price target of $26.30, suggesting a potential upside of 27.98%. As a group, “Communications & Networking” companies have a potential upside of 16.39%. Given Sierra Wireless’ higher possible upside, analysts plainly believe Sierra Wireless is more favorable than its rivals.

Summary

Sierra Wireless rivals beat Sierra Wireless on 7 of the 13 factors compared.

About Sierra Wireless

Sierra Wireless, Inc. is engaged in building the Internet of Things (IoT) with wireless solutions for organizations. The Company’s OEM Solution segment offers cellular embedded wireless modules for IoT connectivity, including an embedded application framework to support customer applications. The Company’s Enterprise Solution segment offers intelligent routers and gateways, including management tools and applications that enable cellular connectivity. The Company’s Cloud and Connectivity Services segment offers a cloud based platform for deploying and managing IoT applications, Smart SIM supported by mobile core networks, and managed wireless broadband services to enable customer IoT deployments. The Company offers a portfolio of second generation, third generation, and fourth generation cellular embedded wireless modules and gateways, integrated with its secure cloud and connectivity services. The Company offers its products to original equipment manufacturers (OEMs) and enterprises.

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