Meru Networks (NASDAQ: MERU) is one of 33 public companies in the “Wireless Telecommunications Services” industry, but how does it contrast to its competitors? We will compare Meru Networks to related companies based on the strength of its analyst recommendations, dividends, profitability, valuation, institutional ownership, risk and earnings.

Analyst Recommendations

This is a summary of recent ratings and target prices for Meru Networks and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Meru Networks 0 0 0 0 N/A
Meru Networks Competitors 530 1686 1841 60 2.35

As a group, “Wireless Telecommunications Services” companies have a potential upside of 31.09%. Given Meru Networks’ competitors higher possible upside, analysts clearly believe Meru Networks has less favorable growth aspects than its competitors.

Valuation & Earnings

This table compares Meru Networks and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Meru Networks N/A N/A -1.86
Meru Networks Competitors $27.09 billion $1.51 billion -244.13

Meru Networks’ competitors have higher revenue and earnings than Meru Networks. Meru Networks is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Volatility and Risk

Meru Networks has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500. Comparatively, Meru Networks’ competitors have a beta of 0.85, suggesting that their average stock price is 15% less volatile than the S&P 500.

Institutional and Insider Ownership

39.8% of shares of all “Wireless Telecommunications Services” companies are owned by institutional investors. 12.5% of shares of all “Wireless Telecommunications Services” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Meru Networks and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Meru Networks -46.15% N/A -86.56%
Meru Networks Competitors -326.97% -5.76% -10.85%

Summary

Meru Networks competitors beat Meru Networks on 5 of the 8 factors compared.

About Meru Networks

Meru Networks, Inc. (Meru) develops and markets a virtualized Wireless Local Area Network (WLAN) solution. The Company’s solution is built around its System Director Operating System, which runs on its controllers and access points. The Company offers additional products designed to deliver network management, diagnostics and security. The Company also offers support services related to its products, professional services, and training. Its products and services are sold through value added resellers, and distributors, as well as its sales force. Its System Director Operating System forms the core of its virtualized WLAN solution. It provides a family of controllers that run its System Director Operating System and work in conjunction with its access points. Its Wireless Fidelity (Wi-Fi) certified access points provide network connectivity for wireless devices. Its bring-your-own-device (BYOD) and policy management solutions are designed to automate secure guest access.

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