Head-To-Head Survey: Plantronics (NYSE:PLT) vs. The Competition

Plantronics (NYSE: PLT) is one of 65 public companies in the “Communications & Networking” industry, but how does it contrast to its competitors? We will compare Plantronics to similar companies based on the strength of its analyst recommendations, institutional ownership, earnings, risk, profitability, valuation and dividends.

Risk and Volatility

Plantronics has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500. Comparatively, Plantronics’ competitors have a beta of 1.09, meaning that their average share price is 9% more volatile than the S&P 500.

Dividends

Plantronics pays an annual dividend of $0.60 per share and has a dividend yield of 1.2%. Plantronics pays out 24.7% of its earnings in the form of a dividend. As a group, “Communications & Networking” companies pay a dividend yield of 1.9% and pay out 47.8% of their earnings in the form of a dividend.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Plantronics 0 1 2 0 2.67
Plantronics Competitors 385 2529 4074 165 2.56

Plantronics presently has a consensus target price of $57.33, suggesting a potential upside of 10.41%. As a group, “Communications & Networking” companies have a potential upside of 11.77%. Given Plantronics’ competitors higher possible upside, analysts clearly believe Plantronics has less favorable growth aspects than its competitors.

Earnings and Valuation

This table compares Plantronics and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Plantronics $881.18 million $82.59 million 21.37
Plantronics Competitors $3.30 billion $346.31 million -113.61

Plantronics’ competitors have higher revenue and earnings than Plantronics. Plantronics 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.

Institutional & Insider Ownership

90.3% of Plantronics shares are owned by institutional investors. Comparatively, 63.6% of shares of all “Communications & Networking” companies are owned by institutional investors. 3.2% of Plantronics shares are owned by company insiders. Comparatively, 12.2% of shares of all “Communications & Networking” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Plantronics 9.41% 20.12% 7.54%
Plantronics Competitors -1.59% -7.75% 0.14%

Summary

Plantronics beats its competitors on 9 of the 15 factors compared.

About Plantronics

Plantronics, Inc. (Plantronics) is engaged in the design, manufacture, and distribution of headsets for business and consumer applications, and other specialty products for the hearing impaired. The Company is a global designer, manufacturer and marketer of communications headsets, telephone headset systems, other communication endpoints and accessories for the business and consumer markets. The Company develops communication products for offices and contact centers, mobile devices, cordless phones, and computers and gaming consoles. Its product categories include Enterprise, which includes corded and cordless communication headsets, audio processors, and telephone systems, and Consumer, which includes Bluetooth and corded products for mobile device applications, personal computer (PC) and gaming headsets, and specialty products marketed for hearing impaired individuals. It offers its products under two brands: Plantronics and Clarity.

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