Critical Analysis: EMCORE Corporation (NASDAQ:EMKR) & Its Peers

EMCORE Corporation (NASDAQ: EMKR) is one of 66 public companies in the “Communications & Networking” industry, but how does it compare to its competitors? We will compare EMCORE Corporation to related businesses based on the strength of its valuation, dividends, institutional ownership, analyst recommendations, risk, profitability and earnings.

Volatility & Risk

EMCORE Corporation has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500. Comparatively, EMCORE Corporation’s competitors have a beta of 1.13, suggesting that their average stock price is 13% more volatile than the S&P 500.

Earnings and Valuation

This table compares EMCORE Corporation and its competitors gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
EMCORE Corporation $92.00 million $8.26 million 24.83
EMCORE Corporation Competitors $3.30 billion $346.42 million -16.52

EMCORE Corporation’s competitors have higher revenue and earnings than EMCORE Corporation. EMCORE Corporation 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.

Analyst Recommendations

This is a summary of recent ratings and price targets for EMCORE Corporation and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EMCORE Corporation 0 1 3 0 2.75
EMCORE Corporation Competitors 370 2225 3849 157 2.57

EMCORE Corporation currently has a consensus price target of $11.88, indicating a potential upside of 59.40%. As a group, “Communications & Networking” companies have a potential upside of 14.57%. Given EMCORE Corporation’s stronger consensus rating and higher possible upside, analysts plainly believe EMCORE Corporation is more favorable than its competitors.

Profitability

This table compares EMCORE Corporation and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EMCORE Corporation 6.73% 9.25% 7.71%
EMCORE Corporation Competitors -3.09% -7.19% -0.27%

Insider and Institutional Ownership

77.8% of EMCORE Corporation shares are owned by institutional investors. Comparatively, 62.9% of shares of all “Communications & Networking” companies are owned by institutional investors. 0.8% of EMCORE Corporation shares are owned by company insiders. Comparatively, 13.2% of shares of all “Communications & Networking” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

EMCORE Corporation beats its competitors on 8 of the 13 factors compared.

EMCORE Corporation Company Profile

EMCORE Corporation is engaged in designing and manufacturing indium phosphide (InP) optical chips, components, subsystems and systems for the broadband and specialty fiber optics market. The Company focuses on linear fiber optic transmission technology. The Company operates through Fiber Optics segment. The Company provides optical components, and also end-to-end solutions for high-speed communications network infrastructures. The Company’s optical technologies are designed for cable television (CATV) and fiber-to-the-premise (FTTP) networks, telecommunications and data centers, satellite communications, aerospace and defense, wireless networks, and broadcast and professional audio/video systems. The Company’s fiber optics products enable information that is modulated on light signals to be transmitted, routed (switched) and received in communication systems and networks.

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