Ciena (NYSE:CIEN – Get Free Report) is one of 110 public companies in the “Communications Equipment” industry, but how does it contrast to its rivals? We will compare Ciena to related businesses based on the strength of its dividends, valuation, profitability, earnings, institutional ownership, analyst recommendations and risk.
Valuation & Earnings
This table compares Ciena and its rivals top-line revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Ciena | $6.02 billion | $123.34 million | 71.46 |
| Ciena Competitors | $5.64 billion | $292.12 million | -2.69 |
Ciena has higher revenue, but lower earnings than its rivals. Ciena 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.
Profitability
This table compares Ciena and its rivals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ciena | 10.87% | 25.33% | 11.27% |
| Ciena Competitors | 0.16% | -5.14% | 2.95% |
Analyst Ratings
This is a summary of recent recommendations for Ciena and its rivals, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ciena | 0 | 6 | 15 | 1 | 2.77 |
| Ciena Competitors | 1072 | 4015 | 7063 | 377 | 2.54 |
Ciena presently has a consensus price target of $485.93, indicating a potential upside of 51.78%. As a group, “Communications Equipment” companies have a potential upside of 36.87%. Given Ciena’s stronger consensus rating and higher probable upside, research analysts plainly believe Ciena is more favorable than its rivals.
Risk and Volatility
Ciena has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500. Comparatively, Ciena’s rivals have a beta of 1.17, indicating that their average share price is 17% more volatile than the S&P 500.
Insider and Institutional Ownership
92.0% of Ciena shares are held by institutional investors. Comparatively, 44.4% of shares of all “Communications Equipment” companies are held by institutional investors. 0.6% of Ciena shares are held by insiders. Comparatively, 18.4% of shares of all “Communications Equipment” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Ciena beats its rivals on 11 of the 13 factors compared.
About Ciena
Ciena Corporation provides hardware and software services for delivery of video, data, and voice traffic metro, aggregation, and access communications network worldwide. The company’s Networking Platforms segment offers convergence of coherent optical transport, open optical networking, optical transport network switching, IP routing, and switching services. Its products include 6500 Packet-Optical Platform, Waveserver stackable interconnect system, and the 6500 Reconfigurable line system, and the 5400 family of Packet-Optical platforms, as well as 8100 coherent routing platforms; 3000 family of service delivery switches and the 5000 family of service aggregation switches, as well as 8700 Packetwave Platform and 6500 Packet Transport System. This segment also sells operating system software and enhanced software features embedded in each of its products. The company’s Blue Planet Automation Software and Services segment provides multi-domain service orchestration, inventory, route optimization and analysis, multi-cloud orchestration, and unified assurance and analytics services. Its Platform Software and Service segment offers MCP domain controller solution, and OneControl unified management system, as well as planning tools. The company’s Global Services segment provides maintenance support and training, installation and deployment, and consulting and network design services. Ciena Corporation was incorporated in 1992 and is headquartered in Hanover, Maryland.
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