Netgear (NTGR) versus Its Competitors Critical Contrast

Netgear (NASDAQ: NTGR) is one of 26 public companies in the “Telephone & telegraph apparatus” industry, but how does it compare to its peers? We will compare Netgear to similar businesses based on the strength of its profitability, risk, institutional ownership, dividends, earnings, analyst recommendations and valuation.

Valuation & Earnings

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This table compares Netgear and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Netgear $1.41 billion $19.43 million 26.59
Netgear Competitors $662.53 million $72.22 million 35.67

Netgear has higher revenue, but lower earnings than its peers. Netgear 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.

Institutional & Insider Ownership

97.5% of Netgear shares are held by institutional investors. Comparatively, 41.0% of shares of all “Telephone & telegraph apparatus” companies are held by institutional investors. 6.2% of Netgear shares are held by insiders. Comparatively, 22.4% of shares of all “Telephone & telegraph apparatus” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Netgear 1.38% 9.92% 6.63%
Netgear Competitors -85.59% -11.41% -6.44%

Analyst Ratings

This is a summary of current recommendations and price targets for Netgear and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Netgear 0 0 3 0 3.00
Netgear Competitors 273 772 893 41 2.35

Netgear currently has a consensus price target of $74.00, indicating a potential upside of 19.94%. As a group, “Telephone & telegraph apparatus” companies have a potential upside of 18.54%. Given Netgear’s stronger consensus rating and higher probable upside, research analysts plainly believe Netgear is more favorable than its peers.

Volatility & Risk

Netgear has a beta of 1.91, indicating that its share price is 91% more volatile than the S&P 500. Comparatively, Netgear’s peers have a beta of 4.41, indicating that their average share price is 341% more volatile than the S&P 500.

Summary

Netgear beats its peers on 8 of the 13 factors compared.

About Netgear

NETGEAR, Inc. designs, develops, and markets networking and Internet connected products for consumers, businesses, and service providers. The company operates in three segments: Arlo, Connected Home, and Small and Medium Business. It offers smart home/connected home/broadband access products, such as remote video security systems, broadband modems, WiFi gateways, WiFi hotspots, WiFi routers and home WiFi systems, WiFi range extenders, Powerline adapters and bridges, and WiFi network adapters. The company also provides Ethernet switches, wireless controllers and access points, unified storage products, and Internet security appliances for small and medium-sized businesses. It markets and sells its products through traditional retailers, online retailers, wholesale distributors, direct market resellers, value-added resellers, and broadband service providers in the Americas, Europe, the Middle-East, Africa, and the Asia Pacific. NETGEAR, Inc. was founded in 1996 and is headquartered in San Jose, California.

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