Lantronix (LTRX) and Its Peers Critical Contrast

Lantronix (NASDAQ: LTRX) is one of 66 publicly-traded companies in the “Communications & Networking” industry, but how does it contrast to its peers? We will compare Lantronix to related companies based on the strength of its valuation, dividends, analyst recommendations, risk, earnings, institutional ownership and profitability.

Insider & Institutional Ownership

17.9% of Lantronix shares are held by institutional investors. Comparatively, 62.9% of shares of all “Communications & Networking” companies are held by institutional investors. 52.4% of Lantronix 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 company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Lantronix -1.83% 2.39% 1.64%
Lantronix Competitors -3.09% -7.19% -0.27%

Earnings and Valuation

This table compares Lantronix and its peers top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Lantronix $44.73 million -$270,000.00 -38.40
Lantronix Competitors $3.30 billion $346.42 million -16.52

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

Analyst Ratings

This is a breakdown of recent recommendations for Lantronix and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lantronix 0 0 1 0 3.00
Lantronix Competitors 370 2225 3849 157 2.57

Lantronix presently has a consensus price target of $4.00, indicating a potential upside of 108.33%. As a group, “Communications & Networking” companies have a potential upside of 14.66%. Given Lantronix’s stronger consensus rating and higher probable upside, research analysts clearly believe Lantronix is more favorable than its peers.

Volatility and Risk

Lantronix has a beta of -0.24, meaning that its stock price is 124% less volatile than the S&P 500. Comparatively, Lantronix’s peers have a beta of 1.13, meaning that their average stock price is 13% more volatile than the S&P 500.

Summary

Lantronix beats its peers on 8 of the 13 factors compared.

Lantronix Company Profile

Lantronix, Inc. is a provider of secure data access and management solutions for Internet of things (IoT) and information technology (IT) assets. The Company organizes its products and solutions into three product lines, including IoT, IT Management and Other. Its IoT products consist of IoT Gateways and IoT Building Blocks. The Company’s IT Management product line includes console management, power management and keyboard video mouse (KVM), products that provide remote out-of-band management (OOBM) access to IT and networking infrastructure deployed in test labs, data centers and server rooms. Its Other product line includes non-focus products, such as the xPrintServer, xSenso and WiBox. Its connectivity solutions serves a range of industries, including data center, medical, security, environmental and government. The Company conducts its business in approximately three geographic regions, including the Americas; Europe, Middle East and Africa (EMEA), and Asia Pacific Japan (APJ).

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