Extreme Networks (EXTR) vs. Its Peers Head to Head Review

Extreme Networks (NASDAQ:EXTR) is one of 110 publicly-traded companies in the “Communications Equipment” industry, but how does it compare to its competitors? We will compare Extreme Networks to related businesses based on the strength of its profitability, analyst recommendations, earnings, risk, valuation, institutional ownership and dividends.

Institutional and Insider Ownership

91.0% of Extreme Networks shares are held by institutional investors. Comparatively, 44.4% of shares of all “Communications Equipment” companies are held by institutional investors. 3.2% of Extreme Networks shares are held by insiders. Comparatively, 18.4% of shares of all “Communications Equipment” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Extreme Networks and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Extreme Networks	3.99%	102.41%	7.47%
Extreme Networks Competitors	5.57%	-5.33%	3.13%

Analyst Recommendations

This is a breakdown of recent ratings for Extreme Networks and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Extreme Networks	0	2	7	1	2.90
Extreme Networks Competitors	1077	4036	7105	383	2.54

Extreme Networks currently has a consensus target price of $33.86, indicating a potential upside of 30.65%. As a group, “Communications Equipment” companies have a potential upside of 40.86%. Given Extreme Networks’ competitors higher probable upside, analysts clearly believe Extreme Networks has less favorable growth aspects than its competitors.

Volatility & Risk

Extreme Networks has a beta of 1.81, meaning that its share price is 81% more volatile than the S&P 500. Comparatively, Extreme Networks’ competitors have a beta of 1.17, meaning that their average share price is 17% more volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Extreme Networks	$1.28 billion	$42.12 million	66.45
Extreme Networks Competitors	$2.74 billion	$292.54 million	4.84

Extreme Networks’ competitors have higher revenue and earnings than Extreme Networks. Extreme Networks is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Extreme Networks beats its competitors on 8 of the 13 factors compared.

Extreme Networks Company Profile

Extreme Networks, Inc. develops networking products and software for businesses and other organizations. Its offerings include wired and wireless network infrastructure, such as switches and Wi-Fi access points, along with cloud-based tools for managing, monitoring and securing networks. The company also provides network analytics, support and professional services. Its solutions are used across industries including education, healthcare, government, retail and hospitality. Founded in 1996, Extreme Networks has expanded through acquisitions, including Enterasys Networks and networking businesses from Brocade and Avaya.