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

Institutional & Insider Ownership

17.0% of EXFO shares are owned by institutional investors. Comparatively, 58.1% of shares of all “Testing & Measuring Equipment” companies are owned by institutional investors. 20.0% of EXFO shares are owned by company insiders. Comparatively, 10.4% of shares of all “Testing & Measuring Equipment” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

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 -4.70% 2.92% -0.42%

Volatility and Risk

EXFO has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500. Comparatively, EXFO’s competitors have a beta of 0.82, indicating that their average share price is 18% less volatile than the S&P 500.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EXFO 0 4 1 0 2.20
EXFO Competitors 53 408 508 10 2.49

EXFO currently has a consensus target price of $5.35, suggesting a potential upside of 38.96%. As a group, “Testing & Measuring Equipment” companies have a potential downside of 27.16%. Given EXFO’s higher probable upside, equities analysts plainly believe EXFO is more favorable than its competitors.

Earnings and Valuation

This table compares EXFO and its competitors revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
EXFO $243.30 million $20.63 million 192.60
EXFO Competitors $481.66 million $95.56 million -36.40

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 7 of the 13 factors compared.

EXFO Company Profile

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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