Reviewing Alcatel Lucent (ALU) & The Competition
Alcatel Lucent (NYSE: ALU) is one of 63 public companies in the “Communications & Networking” industry, but how does it compare to its rivals? We will compare Alcatel Lucent to related businesses based on the strength of its dividends, risk, valuation, institutional ownership, earnings, profitability and analyst recommendations.
This table compares Alcatel Lucent and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Alcatel Lucent Competitors||-0.97%||-8.27%||0.50%|
This is a summary of recent ratings and price targets for Alcatel Lucent and its rivals, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Alcatel Lucent Competitors||378||2399||4004||162||2.57|
As a group, “Communications & Networking” companies have a potential upside of 12.85%. Given Alcatel Lucent’s rivals higher possible upside, analysts plainly believe Alcatel Lucent has less favorable growth aspects than its rivals.
Insider and Institutional Ownership
61.9% of shares of all “Communications & Networking” companies are held by institutional investors. 13.2% of shares of all “Communications & Networking” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Volatility & Risk
Alcatel Lucent has a beta of 2.05, meaning that its stock price is 105% more volatile than the S&P 500. Comparatively, Alcatel Lucent’s rivals have a beta of 1.16, meaning that their average stock price is 16% more volatile than the S&P 500.
Earnings & Valuation
This table compares Alcatel Lucent and its rivals gross revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Alcatel Lucent Competitors||$3.31 billion||$373.33 million||-180.22|
Alcatel Lucent’s rivals have higher revenue and earnings than Alcatel Lucent. Alcatel Lucent is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
Alcatel Lucent Company Profile
Alcatel Lucent SA is a provider of Internet protocol (IP) networking, ultra-broadband access and cloud technology solutions. The Company operates through two segments for the networks business. The Ultra Broadband Networks segment consists of Mobile Networks and Fixed Networks business groups. The IP Networks and Applications segment consists of Internet protocol (IP)/Optical Networks and Applications and Analytics business groups. Its other segment consists of businesses run as separate operations (Alcatel Submarine Networks and Radio Frequency Systems (RFS)). The Company offers a range of solutions, including Communications and collaboration, IP Core Routing, IP/optical integration, long term evolution (LTE) Ultra-Broadband, Software-defined networking and Vplus. The Company offers a range of consulting, managed, maintenance and professional services, including Bell Labs Consulting and Build, Operate and Manage (BOM) Solution for Mobility Networks. The main shareholder is Nokia.
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