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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for National Instruments Corporation and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
National Instruments Corporation 0 1 2 0 2.67
National Instruments Corporation Competitors 259 1983 4245 84 2.63

National Instruments Corporation presently has a consensus price target of $38.33, indicating a potential downside of 11.31%. As a group, “Software” companies have a potential upside of 7.53%. Given National Instruments Corporation’s peers higher possible upside, analysts clearly believe National Instruments Corporation has less favorable growth aspects than its peers.

Profitability

This table compares National Instruments Corporation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
National Instruments Corporation 8.11% 9.81% 7.36%
National Instruments Corporation Competitors -42.00% -25.21% -9.86%

Institutional & Insider Ownership

80.4% of National Instruments Corporation shares are owned by institutional investors. Comparatively, 58.4% of shares of all “Software” companies are owned by institutional investors. 9.9% of National Instruments Corporation shares are owned by company insiders. Comparatively, 20.0% of shares of all “Software” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares National Instruments Corporation and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
National Instruments Corporation $1.25 billion $189.72 million 55.41
National Instruments Corporation Competitors $1.51 billion $446.17 million 42.06

National Instruments Corporation’s peers have higher revenue and earnings than National Instruments Corporation. National Instruments Corporation is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Risk & Volatility

National Instruments Corporation has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500. Comparatively, National Instruments Corporation’s peers have a beta of 0.98, suggesting that their average stock price is 2% less volatile than the S&P 500.

Dividends

National Instruments Corporation pays an annual dividend of $0.84 per share and has a dividend yield of 1.9%. National Instruments Corporation pays out 107.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Software” companies pay a dividend yield of 1.1% and pay out 62.6% of their earnings in the form of a dividend.

Summary

National Instruments Corporation beats its peers on 8 of the 15 factors compared.

National Instruments Corporation Company Profile

National Instruments Corporation (NI) designs, manufactures and sells systems to engineers and scientists. The Company offers a line of measurement, automation and control products. It offers products, technology and services, which include system design software, programming tools, application software, modular hardware products and related driver software, production test systems, NI education platform, software products for teaching and hardware products for teaching. It also offers NI Services, including hardware services and maintenance, software maintenance services, and training and certification. Its products are used across various industries in a range of applications, including research and development, simulation and modeling, prototype and validation, production testing and industrial control and field and factory service and repair. It serves various industries and applications, such as consumer electronics, commercial aerospace, telecommunications and others.

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