Finisar Corporation (NASDAQ: FNSR) is one of 65 public companies in the “Communications & Networking” industry, but how does it compare to its peers? We will compare Finisar Corporation to related businesses based on the strength of its profitability, institutional ownership, dividends, risk, valuation, analyst recommendations and earnings.

Profitability

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

Net Margins Return on Equity Return on Assets
Finisar Corporation 16.92% 13.11% 8.25%
Finisar Corporation Competitors 0.07% -5.15% 1.38%

Volatility and Risk

Finisar Corporation has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500. Comparatively, Finisar Corporation’s peers have a beta of 1.14, indicating that their average share price is 14% more volatile than the S&P 500.

Earnings and Valuation

This table compares Finisar Corporation and its peers revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Finisar Corporation $1.45 billion $249.34 million 8.61
Finisar Corporation Competitors $3.30 billion $346.33 million 27.52

Finisar Corporation’s peers have higher revenue and earnings than Finisar Corporation. Finisar Corporation 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.

Analyst Ratings

This is a summary of recent ratings for Finisar Corporation and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Finisar Corporation 0 2 9 3 3.07
Finisar Corporation Competitors 367 2351 3936 159 2.57

Finisar Corporation presently has a consensus price target of $32.79, indicating a potential upside of 78.88%. As a group, “Communications & Networking” companies have a potential upside of 15.79%. Given Finisar Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe Finisar Corporation is more favorable than its peers.

Institutional & Insider Ownership

88.1% of Finisar Corporation shares are held by institutional investors. Comparatively, 64.6% of shares of all “Communications & Networking” companies are held by institutional investors. 1.0% of Finisar Corporation shares are held by insiders. Comparatively, 12.1% 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.

Summary

Finisar Corporation beats its peers on 9 of the 13 factors compared.

Finisar Corporation Company Profile

Finisar Corporation (Finisar) is a provider of optical subsystems and components that are used in data communication and telecommunication applications. The Company’s optical subsystems consist of transmitters, receivers, transceivers, transponders and active optical cables, which provide the fundamental optical-electrical or optoelectronic interface for interconnecting the electronic equipment used in these networks, including the switches, routers, and servers used in wireline networks. These products rely on the use of semiconductor lasers and photodetectors in conjunction with integrated circuits and optoelectronic packaging to provide a means for transmitting and receiving digital signals over fiber optic cable at speeds ranging from less than one gigabit per second (Gbps), to more than 100 Gbps, over distances of less than 10 meters to more than 2,000 kilometers, using a range of network protocols and physical configurations.

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