Harmonic (HLIT) vs. Its Competitors Head-To-Head Contrast

Harmonic (NASDAQ: HLIT) is one of 65 public companies in the “Communications & Networking” industry, but how does it contrast to its rivals? We will compare Harmonic to similar businesses based on the strength of its analyst recommendations, earnings, valuation, dividends, profitability, institutional ownership and risk.

Earnings & Valuation

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

Gross Revenue NetIncome Price/Earnings Ratio
Harmonic $405.91 million -$72.31 million -3.81
Harmonic Competitors $3.30 billion $346.33 million 22.36

Harmonic’s rivals have higher revenue and earnings than Harmonic. Harmonic is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

99.9% of Harmonic shares are owned by institutional investors. Comparatively, 64.6% of shares of all “Communications & Networking” companies are owned by institutional investors. 5.5% of Harmonic shares are owned by company insiders. Comparatively, 12.1% of shares of all “Communications & Networking” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Harmonic 0 2 2 0 2.50
Harmonic Competitors 389 2534 4076 165 2.56

Harmonic presently has a consensus target price of $5.33, indicating a potential upside of 38.53%. As a group, “Communications & Networking” companies have a potential upside of 15.60%. Given Harmonic’s higher probable upside, equities research analysts clearly believe Harmonic is more favorable than its rivals.

Risk & Volatility

Harmonic has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500. Comparatively, Harmonic’s rivals have a beta of 1.09, meaning that their average share price is 9% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Harmonic -22.02% -13.06% -6.02%
Harmonic Competitors -1.57% -7.64% 0.21%

Summary

Harmonic rivals beat Harmonic on 10 of the 12 factors compared.

About Harmonic

Harmonic Inc. (Harmonic) designs, manufactures and sells video infrastructure products, and system solutions. The Company has two segments: Video and Cable Edge. Harmonic provides technical support and professional services to its customers around the world. The Video segment sells video processing and production, and playout solutions and services to broadcast and media companies, streaming media companies, cable operators, and satellite and telecommunications (telco), and pay television (TV) service providers. Its Cable Edge business sells cable edge solutions and related services to cable operators around the world. The Video segment offers a range of products and solutions, as well as software-based media processing platforms. The Company’s Narrowcast Services Gateway (NSG) products are integrated edge gateway products that integrate routing, multiplexing, scrambling and modulation into a single package for the delivery of narrowcast services to subscribers over cable networks.

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