Head-To-Head Review: EMC (EMC) vs. The Competition
EMC (NYSE: EMC) is one of 31 public companies in the “Computer Hardware” industry, but how does it contrast to its rivals? We will compare EMC to similar companies based on the strength of its institutional ownership, dividends, analyst recommendations, earnings, valuation, profitability and risk.
EMC pays an annual dividend of $0.46 per share and has a dividend yield of 1.6%. EMC pays out 43.0% of its earnings in the form of a dividend. As a group, “Computer Hardware” companies pay a dividend yield of 2.6% and pay out 58.2% of their earnings in the form of a dividend. EMC has increased its dividend for 3 consecutive years.
Insider and Institutional Ownership
79.9% of EMC shares are held by institutional investors. Comparatively, 62.0% of shares of all “Computer Hardware” companies are held by institutional investors. 0.4% of EMC shares are held by insiders. Comparatively, 13.9% of shares of all “Computer Hardware” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares EMC and its rivals gross revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|EMC Competitors||$21.04 billion||$4.38 billion||20.45|
EMC’s rivals have higher revenue and earnings than EMC. EMC is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
Risk & Volatility
EMC has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500. Comparatively, EMC’s rivals have a beta of 1.29, suggesting that their average stock price is 29% more volatile than the S&P 500.
This is a summary of current ratings and target prices for EMC and its rivals, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
As a group, “Computer Hardware” companies have a potential downside of 2.27%. Given EMC’s rivals higher possible upside, analysts plainly believe EMC has less favorable growth aspects than its rivals.
This table compares EMC and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
EMC beats its rivals on 7 of the 13 factors compared.
EMC Company Profile
EMC Corporation (EMC) develops, delivers and supports the information technology (IT) industry’s range of information infrastructure and virtual infrastructure technologies, solutions and services. EMC manages the Company as part of a federation of businesses: EMC Information Infrastructure, VMware Virtual Infrastructure, Pivotal and Virtustream. EMC’s Information Infrastructure business provides a foundation for organizations to store, manage, protect, analyze and secure information. EMC’s VMware Virtual Infrastructure business is engaged in virtualization and cloud infrastructure solutions that enable businesses to help transform the way they build, deliver and consume IT resources in a manner that is based on their specific needs. EMC’s Pivotal business unites strategic technology, people and programs from EMC and VMware and has a platform that consists of data, agile development practices and a cloud independent platform-as-a-service.
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