Silver Spring Networks (NYSE: SSNI) is one of 179 publicly-traded companies in the “IT Services & Consulting” industry, but how does it weigh in compared to its peers? We will compare Silver Spring Networks to related businesses based on the strength of its earnings, risk, profitability, institutional ownership, dividends, analyst recommendations and valuation.

Profitability

This table compares Silver Spring Networks and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Silver Spring Networks -10.28% N/A -6.07%
Silver Spring Networks Competitors -21.26% -278.25% -4.69%

Analyst Ratings

This is a breakdown of recent recommendations for Silver Spring Networks and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Silver Spring Networks 0 10 2 0 2.17
Silver Spring Networks Competitors 726 4632 7334 171 2.54

Silver Spring Networks presently has a consensus target price of $14.95, suggesting a potential downside of 7.92%. As a group, “IT Services & Consulting” companies have a potential downside of 7.15%. Given Silver Spring Networks’ peers stronger consensus rating and higher probable upside, analysts clearly believe Silver Spring Networks has less favorable growth aspects than its peers.

Valuation & Earnings

This table compares Silver Spring Networks and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Silver Spring Networks $311.01 million -$21.62 million -19.33
Silver Spring Networks Competitors $2.86 billion $298.75 million 337.70

Silver Spring Networks’ peers have higher revenue and earnings than Silver Spring Networks. Silver Spring Networks 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.

Insider and Institutional Ownership

76.1% of Silver Spring Networks shares are owned by institutional investors. Comparatively, 60.8% of shares of all “IT Services & Consulting” companies are owned by institutional investors. 25.2% of Silver Spring Networks shares are owned by company insiders. Comparatively, 16.8% of shares of all “IT Services & Consulting” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Silver Spring Networks has a beta of 1.6, indicating that its share price is 60% more volatile than the S&P 500. Comparatively, Silver Spring Networks’ peers have a beta of 1.14, indicating that their average share price is 14% more volatile than the S&P 500.

Summary

Silver Spring Networks peers beat Silver Spring Networks on 7 of the 12 factors compared.

About Silver Spring Networks

Silver Spring Networks, Inc. is engaged in creating, building and deploying large-scale networks and solutions enabling the Internet of things (IoT) for critical infrastructure. The Company provides a networking platform and solutions that enable utilities to transform the power grid infrastructure into the smart grid. Its networking platform enables customers to communicate with devices connected to the power grid. Its networking platform comprises hardware, such as access points and relays; its communications modules; its SilverLinkOS network operating software, and its GridScape management and security software. It offers solutions built upon SilverLink Network and Data platforms, including advanced metering, distribution automation, demand-side management, street lights and its wireless Internet protocol version 6 (IPv6) network service for the IoT, Starfish. Through its managed application services, it manages the SilverLink Control Platform and SilverLink Applications.

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