FireEye (NASDAQ: FEYE) is one of 118 publicly-traded companies in the “Software” industry, but how does it weigh in compared to its peers? We will compare FireEye to related businesses based on the strength of its analyst recommendations, valuation, risk, earnings, dividends, profitability and institutional ownership.

Insider and Institutional Ownership

67.6% of FireEye shares are owned by institutional investors. Comparatively, 58.4% of shares of all “Software” companies are owned by institutional investors. 2.4% of FireEye shares are owned by insiders. Comparatively, 20.0% of shares of all “Software” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

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

Gross Revenue EBITDA Price/Earnings Ratio
FireEye $730.32 million -$161.27 million -8.39
FireEye Competitors $1.51 billion $446.20 million 41.55

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

Risk and Volatility

FireEye has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500. Comparatively, FireEye’s peers have a beta of 0.98, suggesting that their average share price is 2% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
FireEye -46.37% -26.21% -9.23%
FireEye Competitors -42.21% -25.50% -10.13%

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FireEye 0 18 12 0 2.40
FireEye Competitors 389 2314 4399 115 2.59

FireEye currently has a consensus price target of $16.81, indicating a potential upside of 0.23%. As a group, “Software” companies have a potential upside of 9.59%. Given FireEye’s peers stronger consensus rating and higher possible upside, analysts plainly believe FireEye has less favorable growth aspects than its peers.

Summary

FireEye peers beat FireEye on 10 of the 12 factors compared.

FireEye Company Profile

FireEye, Inc. provides intelligence-based cybersecurity solutions that allow organizations to prepare for, prevent, respond to and remediate cyber-attacks. The Company offers various products, such as Threat Detection and Prevention Solutions, which include network security products (NX and Multi-vector Virtual Execution (MVX) Compute Node Series), e-mail security products (EX Series and e-mail threat prevention cloud (ETP), endpoint security products (HX Series) and content security products (FX Series); security management and orchestration products, which include Central Management System and FireEye Security Orchestrator, and forensics and investigation products, which include Threat Analytics Platform (TAP), Malware Analysis (AX Series) and Enterprise Forensics (PX Series and IA Series). Its Subscription and Services offers Threat Intelligence Subscriptions, Security-as-a-Service Offerings, and Customer Support and Maintenance Services.

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