Sierra Wireless (NASDAQ: SWIR) is one of 64 publicly-traded 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 risk, profitability, institutional ownership, valuation, analyst recommendations, earnings and dividends.

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Sierra Wireless and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sierra Wireless 0 9 3 0 2.25
Sierra Wireless Competitors 380 2416 4015 161 2.57

Sierra Wireless currently has a consensus target price of $26.30, suggesting a potential upside of 26.44%. As a group, “Communications & Networking” companies have a potential upside of 16.27%. Given Sierra Wireless’ higher probable upside, equities analysts clearly believe Sierra Wireless is more favorable than its rivals.

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 -2.50% -9.19% -0.56%

Earnings & Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Sierra Wireless $615.61 million $15.38 million 28.89
Sierra Wireless Competitors $3.31 billion $373.34 million -139.08

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.

Risk & Volatility

Sierra Wireless has a beta of 3.17, meaning that its stock price is 217% more volatile than the S&P 500. Comparatively, Sierra Wireless’ rivals have a beta of 1.15, meaning that their average stock price is 15% more volatile than the S&P 500.

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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