Critical Analysis: EMC (EMC) versus Its Competitors
EMC (NYSE: EMC) is one of 31 public companies in the “Computer Hardware” industry, but how does it compare to its peers? We will compare EMC to related companies based on the strength of its valuation, profitability, earnings, risk, institutional ownership, analyst recommendations and dividends.
Institutional & Insider Ownership
79.9% of EMC shares are owned by institutional investors. Comparatively, 62.0% of shares of all “Computer Hardware” companies are owned by institutional investors. 0.4% of EMC shares are owned by insiders. Comparatively, 13.9% of shares of all “Computer Hardware” 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.
Valuation and Earnings
This table compares EMC and its peers top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|EMC Competitors||$21.04 billion||$4.38 billion||20.36|
EMC’s peers have higher revenue and earnings than EMC. EMC 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.
This table compares EMC and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations for EMC and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
As a group, “Computer Hardware” companies have a potential downside of 4.70%. Given EMC’s peers higher possible upside, analysts plainly believe EMC has less favorable growth aspects than its peers.
EMC pays an annual dividend of $0.46 per share and has a dividend yield of 1.6%. EMC pays out 43.0% of its earnings in the form of a dividend. As a group, “Computer Hardware” companies pay a dividend yield of 3.2% and pay out 70.6% of their earnings in the form of a dividend. EMC has raised its dividend for 3 consecutive years.
Risk and Volatility
EMC has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500. Comparatively, EMC’s peers have a beta of 1.29, indicating that their average share price is 29% more volatile than the S&P 500.
EMC beats its peers on 7 of the 13 factors compared.
EMC Company Profile
EMC Corporation (EMC) develops, delivers and supports the information technology (IT) industry’s range of information infrastructure and virtual infrastructure technologies, solutions and services. EMC manages the Company as part of a federation of businesses: EMC Information Infrastructure, VMware Virtual Infrastructure, Pivotal and Virtustream. EMC’s Information Infrastructure business provides a foundation for organizations to store, manage, protect, analyze and secure information. EMC’s VMware Virtual Infrastructure business is engaged in virtualization and cloud infrastructure solutions that enable businesses to help transform the way they build, deliver and consume IT resources in a manner that is based on their specific needs. EMC’s Pivotal business unites strategic technology, people and programs from EMC and VMware and has a platform that consists of data, agile development practices and a cloud independent platform-as-a-service.
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