Contrasting Cray (NASDAQ:CRAY) and Its Rivals

Cray (NASDAQ: CRAY) is one of 12 public companies in the “Electronic computers” industry, but how does it contrast to its peers? We will compare Cray to related businesses based on the strength of its analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.

Insider & Institutional Ownership

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97.3% of Cray shares are owned by institutional investors. Comparatively, 59.5% of shares of all “Electronic computers” companies are owned by institutional investors. 4.0% of Cray shares are owned by insiders. Comparatively, 16.5% of shares of all “Electronic computers” companies are owned by 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.

Earnings and Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Cray $392.51 million -$133.82 million -19.75
Cray Competitors $26.48 billion $3.71 billion 81.88

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

Volatility and Risk

Cray has a beta of 1.49, indicating that its share price is 49% more volatile than the S&P 500. Comparatively, Cray’s peers have a beta of 0.10, indicating that their average share price is 90% less volatile than the S&P 500.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cray 0 0 5 0 3.00
Cray Competitors 121 717 2383 62 2.73

Cray currently has a consensus price target of $27.20, suggesting a potential upside of 36.34%. As a group, “Electronic computers” companies have a potential upside of 23.18%. Given Cray’s stronger consensus rating and higher probable upside, analysts plainly believe Cray is more favorable than its peers.

Profitability

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

Net Margins Return on Equity Return on Assets
Cray -34.10% -8.51% -6.11%
Cray Competitors -3.88% 8.65% 2.33%

Summary

Cray peers beat Cray on 8 of the 13 factors compared.

Cray Company Profile

Cray Inc., together with its subsidiaries, designs, develops, manufactures, markets, and services computing systems, and data analytics and artificial intelligence solutions. It operates through Supercomputing, Storage and Data Management, Maintenance and Support, and Engineering Services and Other segments. The company offers a range of Cray XC series supercomputers, including Cray XC40, Cray XC50, and Cray XC50-AC; Cray CS series supercomputers comprises Cray CS500 and Cray CS-Storm; and analytics products, such as Cray Urika-GX platform used for production-class big data analytics workloads. It also provides storage and data management products comprising cray clusterstor storage systems that embeds the Lustre parallel file system and other software in an optimal configuration; and Cray DataWarp applications accelerator, a DataWarp technology that addresses a problem experienced by supercomputing customers. In addition, the company offers custom engineering solutions; and customer support services consisting of hardware and software maintenance, applications support, installation project management, system installation and de-installation, site preparation, and technical training for its systems, as well as ancillary services in application consulting, third-party software support, site engineering, on-site analysts for defined projects, and specialized training. Cray Inc. sells its products through direct sales force and a partner network of global and regional resellers. It serves clients ranging from government agencies or funded research laboratories, academic institutions, and commercial entities in North America, South America, Asia, Europe, the Middle East, Australia, and Africa. The company was formerly known as Tera Computer Company and changed its name to Cray Inc. in 2000. Cray Inc. was founded in 1987 and is headquartered in Seattle, Washington.

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