Calix (CALX) versus The Competition Financial Analysis

Calix (NYSE:CALX) is one of 110 public companies in the “Communications Equipment” industry, but how does it weigh in compared to its rivals? We will compare Calix to similar businesses based on the strength of its institutional ownership, earnings, profitability, risk, dividends, valuation and analyst recommendations.

Insider and Institutional Ownership

98.1% of Calix shares are held by institutional investors. Comparatively, 44.4% of shares of all “Communications Equipment” companies are held by institutional investors. 17.4% of Calix 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.

Analyst Recommendations

This is a summary of current recommendations for Calix and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Calix	0	2	5	0	2.71
Calix Competitors	1074	4031	7098	382	2.54

Calix presently has a consensus target price of $55.80, suggesting a potential upside of 73.13%. As a group, “Communications Equipment” companies have a potential upside of 46.25%. Given Calix’s stronger consensus rating and higher probable upside, equities analysts plainly believe Calix is more favorable than its rivals.

Profitability

This table compares Calix and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Calix	3.99%	5.67%	4.39%
Calix Competitors	5.56%	-5.22%	3.19%

Earnings and Valuation

This table compares Calix and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Calix	$1.15 billion	$17.88 million	47.40
Calix Competitors	$5.63 billion	$292.54 million	4.29

Calix’s rivals have higher revenue and earnings than Calix. Calix 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.

Risk & Volatility

Calix has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500. Comparatively, Calix’s rivals have a beta of 1.17, indicating that their average stock price is 17% more volatile than the S&P 500.

Summary

Calix beats its rivals on 8 of the 13 factors compared.

Calix Company Profile

Calix, Inc., together with its subsidiaries, engages in the provision of cloud and software platforms, and systems and services in the United States, rest of Americas, Europe, the Middle East, Africa, and the Asia Pacific. Its cloud and software platforms, and systems and services enable broadband service providers (BSPs) to provide a range of services. The company provides Calix Cloud platform, a role-based analytics platform comprising Calix Engagement Cloud, Calix Service Cloud, and Calix Operations Cloud, which are configurable to display role-based insights and enable BSPs to anticipate and target new revenue-generating services and applications through mobile application, such as CommandIQ for residents and CommandWorx for businesses; Calix Intelligent Access EDGE, an access network solution for automated and intelligent networks; and Calix Revenue EDGE, a premises solution for subscriber managed services. It also offers SmartLife managed services, including SmartHome managed services and applications to enhance, operate and secure the connected experience of subscribers in their home; SmartTown managed services that reimagine community Wi-Fi as a ubiquitous, secure, and managed experience across a BSP's footprint; and SmartBiz managed services that address the business networking and productivity needs of business owners with an all-in-one managed service. In addition, the company provides Wi-Fi systems under GigaSpire and GigaPro brands to be ready for deployment as a complete subscriber experience solution for BSP's residential and business subscribers. It offers its products through its direct sales force and resellers. The company was incorporated in 1999 and is headquartered in San Jose, California.