Critical Survey: Black Box Corporation (BBOX) and Its Rivals

Black Box Corporation (NASDAQ: BBOX) is one of 45 public companies in the “Integrated Telecommunications Services” industry, but how does it contrast to its competitors? We will compare Black Box Corporation to similar companies based on the strength of its profitability, earnings, dividends, risk, analyst recommendations, institutional ownership and valuation.

Insider and Institutional Ownership

91.0% of Black Box Corporation shares are owned by institutional investors. Comparatively, 58.3% of shares of all “Integrated Telecommunications Services” companies are owned by institutional investors. 3.7% of Black Box Corporation shares are owned by insiders. Comparatively, 4.5% of shares of all “Integrated Telecommunications Services” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Black Box Corporation has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500. Comparatively, Black Box Corporation’s competitors have a beta of 0.95, meaning that their average share price is 5% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Black Box Corporation and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Black Box Corporation 0 1 0 0 2.00
Black Box Corporation Competitors 531 1528 1824 65 2.36

Black Box Corporation presently has a consensus target price of $10.00, suggesting a potential upside of 194.12%. As a group, “Integrated Telecommunications Services” companies have a potential upside of 44.48%. Given Black Box Corporation’s higher possible upside, equities research analysts clearly believe Black Box Corporation is more favorable than its competitors.

Profitability

This table compares Black Box Corporation and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Black Box Corporation -1.97% 3.05% 1.00%
Black Box Corporation Competitors 0.72% -0.71% 1.42%

Dividends

Black Box Corporation pays an annual dividend of $0.48 per share and has a dividend yield of 14.1%. Black Box Corporation pays out -44.4% of its earnings in the form of a dividend. As a group, “Integrated Telecommunications Services” companies pay a dividend yield of 4.9% and pay out 1,357.5% of their earnings in the form of a dividend. Black Box Corporation is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Black Box Corporation and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Black Box Corporation $828.90 million $20.29 million -3.15
Black Box Corporation Competitors $13.52 billion $4.52 billion 5.26

Black Box Corporation’s competitors have higher revenue and earnings than Black Box Corporation. Black Box 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.

Summary

Black Box Corporation competitors beat Black Box Corporation on 9 of the 15 factors compared.

About Black Box Corporation

Black Box Corporation is a technology solutions provider. The Company is engaged in designing, building, managing and securing the information technology (IT) infrastructure. Offerings under the Company’s Products platform include IT infrastructure, specialty networking, multimedia and keyboard/video/mouse (KVM) switching. Offerings under its Services platform include unified communications, data infrastructure and managed services. It conducts business globally and manages its business on a geographic-service type basis consisting of four segments: North America Products, North America Services, International Products and International Services. The offerings of its Products platform are distributed through value-added resellers, direct marketing manufacturers, mass merchandisers, Web retailers and others. The offerings of its Services platform are distributed through value-added resellers, manufacturers and large system integrators, among others.

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