Analyzing EMCORE Corporation (EMKR) and Its Peers

EMCORE Corporation (NASDAQ: EMKR) is one of 67 publicly-traded companies in the “Communications & Networking” industry, but how does it weigh in compared to its competitors? We will compare EMCORE Corporation to similar companies based on the strength of its dividends, earnings, analyst recommendations, risk, profitability, valuation and institutional ownership.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for EMCORE Corporation and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EMCORE Corporation 0 1 3 0 2.75
EMCORE Corporation Competitors 369 2415 3947 158 2.57

EMCORE Corporation presently has a consensus price target of $11.88, indicating a potential upside of 50.32%. As a group, “Communications & Networking” companies have a potential upside of 21.99%. Given EMCORE Corporation’s stronger consensus rating and higher probable upside, research analysts clearly believe EMCORE Corporation is more favorable than its competitors.

Volatility and Risk

EMCORE Corporation has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500. Comparatively, EMCORE Corporation’s competitors have a beta of 1.17, suggesting that their average stock price is 17% more volatile than the S&P 500.

Profitability

This table compares EMCORE Corporation and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EMCORE Corporation 6.73% 9.25% 7.71%
EMCORE Corporation Competitors -2.26% -6.36% 0.17%

Insider and Institutional Ownership

76.1% of EMCORE Corporation shares are held by institutional investors. Comparatively, 64.1% of shares of all “Communications & Networking” companies are held by institutional investors. 0.8% of EMCORE Corporation shares are held by insiders. Comparatively, 13.4% of shares of all “Communications & Networking” companies are held by 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.

Earnings and Valuation

This table compares EMCORE Corporation and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
EMCORE Corporation $119.32 million $13.00 million 26.33
EMCORE Corporation Competitors $2.88 billion $624.22 million 28.49

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

Summary

EMCORE Corporation beats its competitors on 7 of the 13 factors compared.

About EMCORE Corporation

EMCORE Corporation is engaged in designing and manufacturing indium phosphide (InP) optical chips, components, subsystems and systems for the broadband and specialty fiber optics market. The Company focuses on linear fiber optic transmission technology. The Company operates through Fiber Optics segment. The Company provides optical components, and also end-to-end solutions for high-speed communications network infrastructures. The Company’s optical technologies are designed for cable television (CATV) and fiber-to-the-premise (FTTP) networks, telecommunications and data centers, satellite communications, aerospace and defense, wireless networks, and broadcast and professional audio/video systems. The Company’s fiber optics products enable information that is modulated on light signals to be transmitted, routed (switched) and received in communication systems and networks.

What are top analysts saying about EMCORE Corporation? - Enter your email address in the form below to receive our free daily email newsletter that contains the latest headlines and analysts' recommendations for for EMCORE Corporation and related companies.

Comments

Leave a Reply


share news on Facebook
tweet this investment news
share on linkedin
share on StockTwits
share on Google Plus
share on reddit