Contrasting EMCORE Corporation (EMKR) & Its Rivals

EMCORE Corporation (NASDAQ: EMKR) is one of 67 public companies in the “Communications & Networking” industry, but how does it contrast to its rivals? We will compare EMCORE Corporation to related companies based on the strength of its profitability, dividends, institutional ownership, analyst recommendations, risk, valuation and earnings.

Risk and Volatility

EMCORE Corporation has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500. Comparatively, EMCORE Corporation’s rivals have a beta of 1.17, indicating that their average share price is 17% more volatile than the S&P 500.

Institutional & Insider Ownership

76.1% of EMCORE Corporation shares are owned by institutional investors. Comparatively, 64.0% of shares of all “Communications & Networking” companies are owned by institutional investors. 0.8% of EMCORE Corporation shares are owned by insiders. Comparatively, 12.5% 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 EMCORE Corporation and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
EMCORE Corporation $119.32 million $13.00 million 28.50
EMCORE Corporation Competitors $2.41 billion $618.33 million 27.09

EMCORE Corporation’s rivals have higher revenue and earnings than EMCORE Corporation. EMCORE Corporation 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.

Analyst Ratings

This is a summary of recent recommendations and price targets for EMCORE Corporation and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EMCORE Corporation 0 1 3 0 2.75
EMCORE Corporation Competitors 362 2388 3911 152 2.57

EMCORE Corporation currently has a consensus target price of $11.88, indicating a potential upside of 38.89%. As a group, “Communications & Networking” companies have a potential upside of 21.22%. Given EMCORE Corporation’s stronger consensus rating and higher probable upside, research analysts clearly believe EMCORE Corporation is more favorable than its rivals.

Profitability

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

Net Margins Return on Equity Return on Assets
EMCORE Corporation 6.73% 9.25% 7.71%
EMCORE Corporation Competitors -1.71% -6.54% 0.52%

Summary

EMCORE Corporation beats its rivals on 7 of the 13 factors compared.

About EMCORE Corporation

EMCORE Corporation is engaged in designing and manufacturing indium phosphide (InP) optical chips, components, subsystems and systems for the broadband and specialty fiber optics market. The Company focuses on linear fiber optic transmission technology. The Company operates through Fiber Optics segment. The Company provides optical components, and also end-to-end solutions for high-speed communications network infrastructures. The Company’s optical technologies are designed for cable television (CATV) and fiber-to-the-premise (FTTP) networks, telecommunications and data centers, satellite communications, aerospace and defense, wireless networks, and broadcast and professional audio/video systems. The Company’s fiber optics products enable information that is modulated on light signals to be transmitted, routed (switched) and received in communication systems and networks.

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