Finisar Corporation (NASDAQ: FNSR) is one of 63 publicly-traded companies in the “Communications & Networking” industry, but how does it contrast to its competitors? We will compare Finisar Corporation to related businesses based on the strength of its earnings, profitability, institutional ownership, dividends, risk, valuation and analyst recommendations.

Profitability

This table compares Finisar Corporation and its competitors’ 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 -0.24% -6.95% 1.19%

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, 12.1% of shares of all “Communications & Networking” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Finisar Corporation and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Finisar Corporation $1.45 billion $249.34 million 8.63
Finisar Corporation Competitors $3.30 billion $346.33 million 20.48

Finisar Corporation’s competitors have higher revenue and earnings than Finisar Corporation. Finisar Corporation is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of current ratings and target prices for Finisar Corporation and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Finisar Corporation 0 2 9 3 3.07
Finisar Corporation Competitors 374 2389 3971 159 2.57

Finisar Corporation presently has a consensus price target of $32.79, indicating a potential upside of 78.30%. As a group, “Communications & Networking” companies have a potential upside of 15.17%. Given Finisar Corporation’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Finisar Corporation is more favorable than its competitors.

Volatility & Risk

Finisar Corporation has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500. Comparatively, Finisar Corporation’s competitors have a beta of 1.11, indicating that their average stock price is 11% more volatile than the S&P 500.

Summary

Finisar Corporation beats its competitors on 9 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.

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