Finisar Corporation (NASDAQ: FNSR) is one of 61 public companies in the “Communications & Networking” industry, but how does it compare to its peers? We will compare Finisar Corporation to related companies based on the strength of its profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.

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 0.90% -7.27% 1.19%

Valuation & Earnings

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

Gross Revenue NetIncome Price/Earnings Ratio
Finisar Corporation $1.45 billion $249.34 million 9.04
Finisar Corporation Competitors $3.30 billion $346.33 million -33.33

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

Volatility and Risk

Finisar Corporation has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, Finisar Corporation’s peers have a beta of 1.09, suggesting that their average stock price is 9% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Finisar Corporation and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Finisar Corporation 0 2 9 3 3.07
Finisar Corporation Competitors 360 2176 3812 159 2.58

Finisar Corporation presently has a consensus price target of $32.79, suggesting a potential upside of 70.24%. As a group, “Communications & Networking” companies have a potential upside of 11.26%. Given Finisar Corporation’s stronger consensus rating and higher probable upside, equities analysts clearly believe Finisar Corporation is more favorable than its peers.

Institutional & Insider Ownership

88.1% of Finisar Corporation shares are owned by institutional investors. Comparatively, 64.6% of shares of all “Communications & Networking” companies are owned by institutional investors. 1.0% of Finisar Corporation shares are owned by insiders. Comparatively, 12.8% of shares of all “Communications & Networking” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Finisar Corporation beats its peers on 10 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.

Receive News & Stock Ratings for Finisar Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Finisar Corporation and related stocks with our FREE daily email newsletter.