Reviewing Polycom (NASDAQ:PLCM) & Its Rivals

Polycom (NASDAQ: PLCM) is one of 61 publicly-traded companies in the “Communications & Networking” industry, but how does it compare to its peers? We will compare Polycom to related businesses based on the strength of its dividends, analyst recommendations, profitability, earnings, institutional ownership, risk and valuation.

Profitability

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

Net Margins Return on Equity Return on Assets
Polycom -3.47% -3.73% -2.23%
Polycom Competitors -1.72% -8.65% 0.10%

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Polycom 0 0 0 0 N/A
Polycom Competitors 376 2341 3920 165 2.57

As a group, “Communications & Networking” companies have a potential upside of 11.94%. Given Polycom’s peers higher possible upside, analysts clearly believe Polycom has less favorable growth aspects than its peers.

Risk and Volatility

Polycom has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500. Comparatively, Polycom’s peers have a beta of 1.09, indicating that their average stock price is 9% more volatile than the S&P 500.

Institutional & Insider Ownership

92.4% of Polycom shares are held by institutional investors. Comparatively, 65.6% of shares of all “Communications & Networking” companies are held by institutional investors. 0.7% of Polycom shares are held by insiders. Comparatively, 12.8% of shares of all “Communications & Networking” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Polycom and its peers gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Polycom N/A N/A 77.94
Polycom Competitors $3.52 billion $369.76 million -61.01

Polycom’s peers have higher revenue and earnings than Polycom. Polycom 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

Polycom peers beat Polycom on 5 of the 8 factors compared.

About Polycom

Polycom, Inc. (Polycom) offers solutions for voice, video and content sharing and a line of support and service solutions. The Company operates in Americas; Europe, Middle East and Africa (EMEA), and Asia Pacific (APAC) geographic segments. The Company’s video, voice and content-management and content-sharing solutions include applications for mobile devices, browser-based video collaboration, cloud-delivered services, conference room systems and home/work office solutions and immersive telepresence. It offers various products and solutions, which include UC Group Systems, UC Platform and UC Personal Devices. UC Group Systems includes group video, group voice and immersive telepresence systems. UC Platform includes universal collaboration servers, virtualization management, resource management, recording and streaming, and remote access technologies that constitute the RealPresence Platform. UC Personal Devices includes group video, group voice and immersive telepresence systems.

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