Critical Contrast: Ciena Corporation (CIEN) and Its Rivals

Ciena Corporation (NYSE: CIEN) is one of 67 public companies in the “Communications & Networking” industry, but how does it contrast to its rivals? We will compare Ciena Corporation to similar companies based on the strength of its profitability, dividends, valuation, analyst recommendations, institutional ownership, earnings and risk.

Profitability

This table compares Ciena Corporation and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ciena Corporation 4.99% 25.53% 7.61%
Ciena Corporation Competitors -2.19% -5.97% 0.32%

Insider & Institutional Ownership

64.1% of shares of all “Communications & Networking” companies are held by institutional investors. 1.5% of Ciena Corporation shares are held by company insiders. Comparatively, 13.4% of shares of all “Communications & Networking” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk & Volatility

Ciena Corporation has a beta of 1.69, indicating that its share price is 69% more volatile than the S&P 500. Comparatively, Ciena Corporation’s rivals have a beta of 1.17, indicating that their average share price is 17% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Ciena Corporation and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ciena Corporation 0 3 19 0 2.86
Ciena Corporation Competitors 369 2415 3947 158 2.57

Ciena Corporation presently has a consensus price target of $29.50, indicating a potential upside of 40.95%. As a group, “Communications & Networking” companies have a potential upside of 21.89%. Given Ciena Corporation’s stronger consensus rating and higher probable upside, equities analysts clearly believe Ciena Corporation is more favorable than its rivals.

Valuation and Earnings

This table compares Ciena Corporation and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Ciena Corporation $2.77 billion $361.58 million 22.75
Ciena Corporation Competitors $2.88 billion $624.22 million 28.49

Ciena Corporation’s rivals have higher revenue and earnings than Ciena Corporation. Ciena Corporation is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Ciena Corporation beats its rivals on 7 of the 13 factors compared.

Ciena Corporation Company Profile

Ciena Corporation is a network strategy and technology company, which provides solutions that enable a range of network operators to adopt communication architectures and deliver an array of services, relied upon by enterprise and consumer end users. It provides equipment, software and services that support the transport, switching, aggregation, service delivery and management of voice, video and data traffic on communications networks. It segments include Networking Platforms; Software and Software-Related Services, and Global Services. The Networking Platforms segment consists of Converged Packet Optical, Packet Networking and Optical Transport product portfolios. The software business is engaged in the development and licensing of element and network management software and software-related services that support its hardware offerings. It offers a suite of consulting and support services that help its customers to design, optimize, deploy and maintain their communications networks.

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