Critical Analysis: Oclaro (OCLR) versus Its Rivals
Oclaro (NASDAQ: OCLR) is one of 67 public companies in the “Communications & Networking” industry, but how does it compare to its peers? We will compare Oclaro to related businesses based on the strength of its dividends, risk, earnings, profitability, analyst recommendations, valuation and institutional ownership.
Earnings & Valuation
This table compares Oclaro and its peers top-line revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Oclaro||$600.97 million||$140.44 million||12.52|
|Oclaro Competitors||$2.87 billion||$625.83 million||26.59|
Oclaro’s peers have higher revenue and earnings than Oclaro. Oclaro 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.
This is a breakdown of recent recommendations and price targets for Oclaro and its peers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Oclaro currently has a consensus target price of $13.33, indicating a potential upside of 42.00%. As a group, “Communications & Networking” companies have a potential upside of 25.91%. Given Oclaro’s stronger consensus rating and higher possible upside, research analysts clearly believe Oclaro is more favorable than its peers.
Risk and Volatility
Oclaro has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500. Comparatively, Oclaro’s peers have a beta of 1.17, suggesting that their average share price is 17% more volatile than the S&P 500.
This table compares Oclaro and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
70.5% of Oclaro shares are owned by institutional investors. Comparatively, 64.0% of shares of all “Communications & Networking” companies are owned by institutional investors. 2.3% of Oclaro shares are owned by insiders. Comparatively, 12.5% 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 is poised for long-term growth.
Oclaro beats its peers on 9 of the 13 factors compared.
Oclaro, Inc. is a provider of optical components, modules and subsystems for the core optical transport, service provider, enterprise and data center markets. The Company provides various solutions for optical networks and interconnects driving the next wave of streaming video, cloud computing, application virtualization and other bandwidth-intensive and high-speed applications. The Company’s product offerings include client side transceivers, line side transceivers, tunable laser transmitters, lithium niobate modulators, transponder modules, and discrete lasers and receivers. It designs, manufactures and markets optical components, modules and subsystems that generate, detect, combine and separate light signals in optical communications networks. The Company supplies transmission products at the component level and the module level into 10 gigabits per second (Gb/s), 40 Gb/s and 100 Gb/s communications solutions.
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