Riverbed Technology (NASDAQ: RVBD) is one of 63 public companies in the “Communications & Networking” industry, but how does it weigh in compared to its competitors? We will compare Riverbed Technology to similar businesses based on the strength of its dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.

Earnings and Valuation

This table compares Riverbed Technology and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Riverbed Technology N/A N/A 47.70
Riverbed Technology Competitors $3.30 billion $346.31 million -116.56

Riverbed Technology’s competitors have higher revenue and earnings than Riverbed Technology. Riverbed Technology 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.

Profitability

This table compares Riverbed Technology and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Riverbed Technology 17.55% 24.83% 10.64%
Riverbed Technology Competitors 1.15% -5.65% 1.91%

Institutional and Insider Ownership

63.6% of shares of all “Communications & Networking” companies are owned by institutional investors. 13.0% of shares of all “Communications & Networking” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Riverbed Technology has a beta of 2.02, meaning that its stock price is 102% more volatile than the S&P 500. Comparatively, Riverbed Technology’s competitors have a beta of 1.13, meaning that their average stock price is 13% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Riverbed Technology and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Riverbed Technology 0 0 0 0 N/A
Riverbed Technology Competitors 373 2467 4035 165 2.57

As a group, “Communications & Networking” companies have a potential upside of 11.64%. Given Riverbed Technology’s competitors higher possible upside, analysts clearly believe Riverbed Technology has less favorable growth aspects than its competitors.

Riverbed Technology Company Profile

Riverbed Technology, Inc. (Riverbed) is a provider of application performance infrastructure. The Company offers a platform to deliver, control and optimize IT resources across the hybrid enterprise. The Riverbed Application Performance Platform delivers application performance infrastructure solutions with a focus on two areas, which include application acceleration and performance management. The Wide area network (WAN) optimization for application acceleration includes Riverbed SteelHead, which provides WAN optimization solution, and Riverbed SteelFusion, which provides branch converged infrastructure. The Company’s application acceleration solutions also include Riverbed SteelApp, an application delivery controller (ADC). The Company’s performance management solution includes Riverbed SteelCentral, a performance management suite that combines its application-aware network performance management and application performance management control suite.

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