Comparing Xunlei (XNET) & Its Competitors

Xunlei (NASDAQ:XNET) is one of 953 public companies in the “Software” industry, but how does it compare to its rivals? We will compare Xunlei to similar businesses based on the strength of its risk, analyst recommendations, valuation, earnings, dividends, institutional ownership and profitability.

Institutional and Insider Ownership

5.1% of Xunlei shares are held by institutional investors. Comparatively, 41.8% of shares of all “Software” companies are held by institutional investors. 21.7% of Xunlei shares are held by company insiders. Comparatively, 19.9% of shares of all “Software” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and target prices for Xunlei and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xunlei	0	1	0	0	2.00
Xunlei Competitors	5747	21523	44878	1497	2.57

As a group, “Software” companies have a potential upside of 28.85%. Given Xunlei’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Xunlei has less favorable growth aspects than its rivals.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Xunlei	-15.25%	0.62%	0.52%
Xunlei Competitors	-612.64%	20.88%	-8.99%

Risk & Volatility

Xunlei has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500. Comparatively, Xunlei’s rivals have a beta of 1.34, meaning that their average stock price is 34% more volatile than the S&P 500.

Earnings and Valuation

This table compares Xunlei and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Xunlei	$462.41 million	$1.05 billion	-2.85
Xunlei Competitors	$1.79 billion	$385.91 million	106.78

Xunlei’s rivals have higher revenue, but lower earnings than Xunlei. Xunlei 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.

Summary

Xunlei rivals beat Xunlei on 9 of the 13 factors compared.

About Xunlei

Xunlei Limited, together with its subsidiaries, operates an internet platform for digital media content in the People's Republic of China. Its platform is based on cloud technology that enables users to access, store, manage, and consume digital media content. The company offers Xunlei Accelerator, which enables users to accelerate digital transmission over the internet; mobile acceleration plug-in, which provides mobile device users with benefits of download speed acceleration and download success rate improvements; and subscription services that offer users premium services through Green Channel and Fast Bird products. It also provides Mobile Xunlei, a mobile application that allows users to search, download, consume, and store digital media content; Xunlei Media Player, which supports online and offline play of digital media content, as well as simultaneous play of digital media content while it is being transmitted by Xunlei Accelerator; online games through online game website and mobile app; advertising services; live streaming products, including video and audio livestreaming; and develops software and computer software, as well as other internet value-added services. In addition, the company offers cloud computing services through OneThing Cloud, and StellarCloud; and hardware for edging computing, such as OneThing Edge Cube, and OneThing Edge Atom. Further it offers ThunderChain, a blockchain infrastructure product that enables its users to develop and manage blockchain applications. The company was formerly known as Giganology Limited and changed its name to Xunlei Limited in January 2011. Xunlei Limited was founded in 2003 and is headquartered in Shenzhen, the People's Republic of China.