Comparing Mitel Networks Corporation (MITL) & The Competition

Mitel Networks Corporation (NASDAQ: MITL) is one of 100 public companies in the “Enterprise Software” industry, but how does it contrast to its peers? We will compare Mitel Networks Corporation to similar companies based on the strength of its valuation, earnings, analyst recommendations, institutional ownership, profitability, dividends and risk.

Insider & Institutional Ownership

79.1% of Mitel Networks Corporation shares are owned by institutional investors. Comparatively, 60.9% of shares of all “Enterprise Software” companies are owned by institutional investors. 16.5% of Mitel Networks Corporation shares are owned by company insiders. Comparatively, 21.9% of shares of all “Enterprise Software” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Mitel Networks Corporation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mitel Networks Corporation -26.71% -9.36% -2.42%
Mitel Networks Corporation Competitors -20.88% -214.66% -6.65%

Earnings and Valuation

This table compares Mitel Networks Corporation and its peers gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Mitel Networks Corporation $987.60 million -$217.30 million -3.75
Mitel Networks Corporation Competitors $1.76 billion $288.64 million 27.96

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Mitel Networks Corporation and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mitel Networks Corporation 0 1 1 0 2.50
Mitel Networks Corporation Competitors 364 2183 4114 119 2.59

Mitel Networks Corporation presently has a consensus target price of $11.25, indicating a potential upside of 45.54%. As a group, “Enterprise Software” companies have a potential upside of 0.60%. Given Mitel Networks Corporation’s higher probable upside, equities analysts plainly believe Mitel Networks Corporation is more favorable than its peers.

Volatility & Risk

Mitel Networks Corporation has a beta of 2.7, suggesting that its stock price is 170% more volatile than the S&P 500. Comparatively, Mitel Networks Corporation’s peers have a beta of 1.12, suggesting that their average stock price is 12% more volatile than the S&P 500.

Summary

Mitel Networks Corporation peers beat Mitel Networks Corporation on 7 of the 12 factors compared.

Mitel Networks Corporation Company Profile

Mitel Networks Corporation is a provider of business communications and collaboration software, services and solutions. The Company’s segments include Cloud and Enterprise. The Enterprise segment sells and supports products and services for premise-based customers. The Cloud segment sells and supports products that are deployed in a cloud environment. The Company’s product portfolio includes premises and cloud-based enterprise communications infrastructure products and solutions, unified communications and collaboration (UCC) and contact center applications and a range of service offerings. The Company’s Cloud Division offers a range of private, public, hybrid and mobile Software as a Service (SaaS) solutions for businesses of all sizes. This includes Unified Communications as a Service (UCaaS) solutions. Its Enterprise Division portfolio integrates voice, UCC applications, and contact center applications on fixed and mobile networks across a range of end user devices.

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