Reviewing Emulex (ELX) and Its Competitors

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

Institutional & Insider Ownership

61.8% of shares of all “Communications & Networking” companies are held by institutional investors. 13.2% 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 company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Emulex -61.34% -54.64% -34.34%
Emulex Competitors -3.54% -10.00% -1.16%

Analyst Recommendations

This is a summary of recent ratings and target prices for Emulex and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Emulex 0 0 0 0 N/A
Emulex Competitors 440 2490 4074 164 2.55

As a group, “Communications & Networking” companies have a potential upside of 13.67%. Given Emulex’s competitors higher probable upside, analysts clearly believe Emulex has less favorable growth aspects than its competitors.

Earnings and Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Emulex N/A N/A -8.32
Emulex Competitors $3.31 billion $373.33 million -134.47

Emulex’s competitors have higher revenue and earnings than Emulex. Emulex 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.

Summary

Emulex competitors beat Emulex on 7 of the 8 factors compared.

About Emulex

Emulex Corporation (Emulex) is a provider of network connectivity, monitoring and management products. It provides solutions for networks that support enterprise, cloud, government and telecommunications sectors. The Company’s portfolio of input/output (I/O) connectivity offerings, including the line of Ethernet and Fiber Channel-based connectivity products, has been designed into server and storage solutions. Its monitoring and management solutions include its network visibility and recording products. The Company’s network connectivity, monitoring and management solutions are offered through two business segments: Connectivity Segment and the Visibility Segment. The Connectivity Segment comprises the Company’s Emulex products, and network connectivity products (NCP) and storage connectivity and other products (SCOP). Its Visibility Segment comprises its Network Visibility Products (NVP).

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