Head to Head Review: EXFO (EXFO) vs. Its Competitors

EXFO (NASDAQ: EXFO) is one of 29 publicly-traded companies in the “Testing & Measuring Equipment” industry, but how does it compare to its peers? We will compare EXFO to similar companies based on the strength of its institutional ownership, profitability, dividends, analyst recommendations, valuation, earnings and risk.

Volatility & Risk

EXFO has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500. Comparatively, EXFO’s peers have a beta of 0.82, meaning that their average stock price is 18% less volatile than the S&P 500.

Earnings and Valuation

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

Gross Revenue EBITDA Price/Earnings Ratio
EXFO $243.18 million $17.91 million 98.77
EXFO Competitors $481.50 million $95.49 million -2.80

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

Profitability

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

Net Margins Return on Equity Return on Assets
EXFO 0.93% 3.25% 2.47%
EXFO Competitors -4.90% 2.01% -0.80%

Insider & Institutional Ownership

17.0% of EXFO shares are held by institutional investors. Comparatively, 58.2% of shares of all “Testing & Measuring Equipment” companies are held by institutional investors. 20.0% of EXFO shares are held by insiders. Comparatively, 10.4% of shares of all “Testing & Measuring Equipment” companies are held 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.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EXFO 0 4 1 0 2.20
EXFO Competitors 48 394 498 9 2.49

EXFO presently has a consensus price target of $5.70, suggesting a potential upside of 44.30%. As a group, “Testing & Measuring Equipment” companies have a potential downside of 20.35%. Given EXFO’s higher probable upside, analysts plainly believe EXFO is more favorable than its peers.

Summary

EXFO peers beat EXFO on 7 of the 13 factors compared.

EXFO Company Profile

EXFO Inc is a Canada-based company, which provides communications service providers (CSPs) and data center, cloud and Web-scale operators with field test, service assurance and analytics solutions to ensure the deployment, maintenance and management of physical, virtual, fixed and mobile networks. It focuses on network infrastructures: fourth generation (4G)/long-term evolution (LTE), wireless backhaul, small cells and distributed antenna systems (DAS), 100G network upgrades and fiber-to-the-home (FTTH)/fiber-to-the-curb (FTTC)/fiber-to-the-node (FTTN) deployments. It offers a range of wire line and wireless tests, service assurance and analytics solutions to the global telecommunications industry. Its products include TestFlow; LTB-8 platform; a family of optical time domain reflect meters (OTDRs); iSAM; MaxTester-940 Fiber Certifier optical loss test set (OLTS) for data center and enterprise markets, and the G.fast handheld test set.

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