NetApp (NASDAQ:NTAP – Get Free Report) is one of 82 publicly-traded companies in the “Technology Hardware, Storage & Peripherals” industry, but how does it compare to its rivals? We will compare NetApp to related companies based on the strength of its analyst recommendations, earnings, risk, dividends, institutional ownership, profitability and valuation.
Profitability
This table compares NetApp and its rivals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NetApp | 18.43% | 117.23% | 13.09% |
| NetApp Competitors | -609.25% | -15.45% | 3.05% |
Dividends
NetApp pays an annual dividend of $2.08 per share and has a dividend yield of 1.0%. NetApp pays out 32.7% of its earnings in the form of a dividend. As a group, “Technology Hardware, Storage & Peripherals” companies pay a dividend yield of 3.6% and pay out 41.4% of their earnings in the form of a dividend. NetApp has raised its dividend for 1 consecutive years.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NetApp | 0 | 10 | 5 | 0 | 2.33 |
| NetApp Competitors | 1055 | 4267 | 7605 | 358 | 2.55 |
NetApp currently has a consensus price target of $172.33, suggesting a potential downside of 13.28%. As a group, “Technology Hardware, Storage & Peripherals” companies have a potential upside of 27.08%. Given NetApp’s rivals stronger consensus rating and higher probable upside, analysts clearly believe NetApp has less favorable growth aspects than its rivals.
Volatility and Risk
NetApp has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500. Comparatively, NetApp’s rivals have a beta of 1.56, suggesting that their average share price is 56% more volatile than the S&P 500.
Insider & Institutional Ownership
92.2% of NetApp shares are held by institutional investors. Comparatively, 51.3% of shares of all “Technology Hardware, Storage & Peripherals” companies are held by institutional investors. 0.4% of NetApp shares are held by insiders. Comparatively, 10.5% of shares of all “Technology Hardware, Storage & Peripherals” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares NetApp and its rivals revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| NetApp | $6.92 billion | $1.28 billion | 31.25 |
| NetApp Competitors | $22.97 billion | $3.61 billion | 6.49 |
NetApp’s rivals have higher revenue and earnings than NetApp. NetApp 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.
Summary
NetApp rivals beat NetApp on 9 of the 15 factors compared.
About NetApp
NetApp, Inc. provides cloud-led and data-centric services to manage and share data on-premises, and private and public clouds worldwide. It operates in two segments, Hybrid Cloud and Public Could. The company offers intelligent data management software, such as NetApp ONTAP, NetApp Snapshot, NetApp SnapCenter Backup Management, NetApp SnapMirror Data Replication, NetApp SnapLock Data Compliance, and storage infrastructure solutions, including NetApp All-Flash FAS series, NetApp Fabric Attached Storage, NetApp E/EF series, and NetApp StorageGRID. In addition, it provides cloud storage and data services comprising NetApp Cloud Volumes ONTAP, Azure NetApp Files, Amazon FSx for NetApp ONTAP, NetApp Cloud Volumes Service for Google Cloud, and cloud operations services, such as NetApp Cloud Insights, Spot by NetApp, and Instaclustr. Further, the company offers application-aware data management service under the NetApp Astra name; and professional and support services, such as strategic consulting, professional, managed, and support services. Additionally, it provides assessment, design, implementation, and migration services. The company serves the energy, financial service, government, technology, internet, life science, healthcare service, manufacturing, media, entertainment, animation, video postproduction, and markets through a direct sales force and an ecosystem of partners. NetApp, Inc. was incorporated in 1992 and is headquartered in San Jose, California.
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