Harmonic (NASDAQ: HLIT) is one of 64 publicly-traded companies in the “Communications & Networking” industry, but how does it weigh in compared to its peers? We will compare Harmonic to related businesses based on the strength of its dividends, valuation, institutional ownership, analyst recommendations, profitability, risk and earnings.

Profitability

This table compares Harmonic and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Harmonic -22.02% -13.06% -6.02%
Harmonic Competitors -4.31% -9.84% -1.17%

Institutional and Insider Ownership

96.0% of Harmonic shares are owned by institutional investors. Comparatively, 62.1% of shares of all “Communications & Networking” companies are owned by institutional investors. 4.3% of Harmonic shares are owned by insiders. Comparatively, 13.2% of shares of all “Communications & Networking” 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.

Risk & Volatility

Harmonic has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500. Comparatively, Harmonic’s peers have a beta of 1.13, meaning that their average share price is 13% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Harmonic and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Harmonic 0 2 2 0 2.50
Harmonic Competitors 385 2448 4018 159 2.56

Harmonic currently has a consensus target price of $5.33, suggesting a potential upside of 28.51%. As a group, “Communications & Networking” companies have a potential upside of 17.44%. Given Harmonic’s higher possible upside, equities analysts clearly believe Harmonic is more favorable than its peers.

Valuation and Earnings

This table compares Harmonic and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Harmonic $405.91 million -$72.31 million -4.11
Harmonic Competitors $3.30 billion $346.31 million -137.54

Harmonic’s peers have higher revenue and earnings than Harmonic. Harmonic is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Harmonic peers beat Harmonic on 10 of the 12 factors compared.

Harmonic Company Profile

Harmonic Inc. (Harmonic) designs, manufactures and sells video infrastructure products, and system solutions. The Company has two segments: Video and Cable Edge. Harmonic provides technical support and professional services to its customers around the world. The Video segment sells video processing and production, and playout solutions and services to broadcast and media companies, streaming media companies, cable operators, and satellite and telecommunications (telco), and pay television (TV) service providers. Its Cable Edge business sells cable edge solutions and related services to cable operators around the world. The Video segment offers a range of products and solutions, as well as software-based media processing platforms. The Company’s Narrowcast Services Gateway (NSG) products are integrated edge gateway products that integrate routing, multiplexing, scrambling and modulation into a single package for the delivery of narrowcast services to subscribers over cable networks.

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