Reviewing Netgear (NASDAQ:NTGR) & Its Peers

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

Risk and Volatility

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Netgear has a beta of 1.9, meaning that its share price is 90% more volatile than the S&P 500. Comparatively, Netgear’s rivals have a beta of 4.42, meaning that their average share price is 342% more volatile than the S&P 500.



Profitability

This table compares Netgear and its rivals’ 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 -85.68% -12.82% -6.75%

Analyst Ratings

This is a summary of recent recommendations for Netgear and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Netgear 0 0 3 0 3.00
Netgear Competitors 274 771 892 41 2.35

Netgear currently has a consensus target price of $74.00, indicating a potential upside of 16.81%. As a group, “Telephone & telegraph apparatus” companies have a potential upside of 18.25%. Given Netgear’s rivals higher probable upside, analysts plainly believe Netgear has less favorable growth aspects than its rivals.

Earnings and Valuation

This table compares Netgear and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Netgear $1.41 billion $19.43 million 27.31
Netgear Competitors $662.53 million $72.22 million 36.25

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

Insider and Institutional 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, 22.6% of shares of all “Telephone & telegraph apparatus” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Netgear beats its rivals on 7 of the 13 factors compared.

Netgear Company Profile

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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