Reviewing Emulex (NYSE:ELX) and Its Peers

Emulex (NYSE: ELX) is one of 68 public companies in the “Communications & Networking” industry, but how does it contrast to its peers? We will compare Emulex to similar companies based on the strength of its earnings, profitability, analyst recommendations, risk, dividends, valuation and institutional ownership.

Insider and Institutional Ownership

60.5% of shares of all “Communications & Networking” companies are held by institutional investors. 13.6% 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 stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Emulex and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Emulex 0 0 0 0 N/A
Emulex Competitors 470 2640 4217 171 2.55

As a group, “Communications & Networking” companies have a potential upside of 16.77%. Given Emulex’s peers higher possible upside, analysts plainly believe Emulex has less favorable growth aspects than its peers.

Earnings & Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Emulex N/A N/A -8.32
Emulex Competitors $3.20 billion $366.48 million -78.25

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


This table compares Emulex and its peers’ 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 -4.59% -9.39% -0.99%


Emulex peers 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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