Contrasting Echelon Corporation (ELON) and Its Rivals

Echelon Corporation (NASDAQ: ELON) is one of 196 publicly-traded companies in the “IT Services & Consulting” industry, but how does it compare to its rivals? We will compare Echelon Corporation to related businesses based on the strength of its valuation, institutional ownership, profitability, risk, dividends, analyst recommendations and earnings.

Institutional and Insider Ownership

20.5% of Echelon Corporation shares are owned by institutional investors. Comparatively, 60.9% of shares of all “IT Services & Consulting” companies are owned by institutional investors. 9.1% of Echelon Corporation shares are owned by company insiders. Comparatively, 16.8% of shares of all “IT Services & Consulting” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Echelon Corporation has a beta of -0.59, indicating that its share price is 159% less volatile than the S&P 500. Comparatively, Echelon Corporation’s rivals have a beta of 1.27, indicating that their average share price is 27% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Echelon Corporation and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Echelon Corporation 0 0 0 0 N/A
Echelon Corporation Competitors 683 4459 7466 169 2.56

As a group, “IT Services & Consulting” companies have a potential downside of 1.36%. Given Echelon Corporation’s rivals higher possible upside, analysts clearly believe Echelon Corporation has less favorable growth aspects than its rivals.

Profitability

This table compares Echelon Corporation and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Echelon Corporation -16.22% -19.68% -14.76%
Echelon Corporation Competitors -20.59% -52.55% -4.12%

Valuation and Earnings

This table compares Echelon Corporation and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Echelon Corporation $31.50 million -$4.38 million -4.31
Echelon Corporation Competitors $2.12 billion $367.63 million 16.60

Echelon Corporation’s rivals have higher revenue and earnings than Echelon Corporation. Echelon Corporation is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Echelon Corporation rivals beat Echelon Corporation on 7 of the 9 factors compared.

Echelon Corporation Company Profile

Echelon Corporation develops open-standard control networking platforms and delivers elements necessary to design, install, monitor and control communities of devices. The Company’s products enable everyday devices, such as air conditioners, outdoor lighting, appliances, electricity meters, light switches, thermostats and valves to be inter-connected and be part of the Industrial Internet of Things (IIoT) market. It operates through the IIoT segment. Its IIoT business sells products and services that form embedded control platforms, such as LONWORKS and IzoT. The Company’s IIoT business also sells products and services, which include components, control nodes and development software. The Company also offers a solution consisting of outdoor lighting controllers, segment controllers, gateways and software to end customers, such as municipalities, cities, campuses and commercial enterprises. The Company markets its products under the Echelon brand.

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