Head-To-Head Analysis: Spirent (SPMYY) vs. Its Rivals

Spirent (OTCMKTS: SPMYY) is one of 73 publicly-traded companies in the “Telephone communication, except radio” industry, but how does it contrast to its peers? We will compare Spirent to related companies based on the strength of its profitability, analyst recommendations, institutional ownership, dividends, valuation, earnings and risk.

Dividends

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Spirent pays an annual dividend of $0.15 per share and has a dividend yield of 2.2%. Spirent pays out 71.4% of its earnings in the form of a dividend. As a group, “Telephone communication, except radio” companies pay a dividend yield of 4.0% and pay out 72.5% of their earnings in the form of a dividend.

Valuation & Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Spirent $454.80 million $29.00 million 32.52
Spirent Competitors $17.40 billion $2.02 billion 17.72

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

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Spirent 0 0 0 0 N/A
Spirent Competitors 609 1860 1943 98 2.34

As a group, “Telephone communication, except radio” companies have a potential upside of 65.60%. Given Spirent’s peers higher probable upside, analysts clearly believe Spirent has less favorable growth aspects than its peers.

Insider and Institutional Ownership

46.9% of shares of all “Telephone communication, except radio” companies are owned by institutional investors. 1.0% of Spirent shares are owned by company insiders. Comparatively, 7.3% of shares of all “Telephone communication, except radio” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Spirent has a beta of 0.21, indicating that its share price is 79% less volatile than the S&P 500. Comparatively, Spirent’s peers have a beta of 0.59, indicating that their average share price is 41% less volatile than the S&P 500.

Profitability

This table compares Spirent and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Spirent N/A N/A N/A
Spirent Competitors -12.56% -11.21% -0.99%

Summary

Spirent peers beat Spirent on 7 of the 11 factors compared.

About Spirent

Spirent Communications plc provides test methodologies and solutions for communication technologies worldwide. The company operates through three segments: Networks & Applications, Wireless & Positioning, and Service Assurance. The Networks & Applications segment develops solutions for functional, performance, and security testing of next-generation networks and applications that simulate real-world conditions in the lab, before a commercial launch, and in the live network. This segment's solutions portfolio addresses data centers, cloud computing, network virtualization, applications and security, high speed Ethernet networks and services, and test automation and management. The Wireless & Positioning segment provides solutions to test the functionality and performance of 4G LTE and 3G mobile devices and services, satellite positioning, navigation, and timing. This segment focuses on wireless devices, wireless services, and satellite navigation and global positioning. The Service Assurance segment develops distributed systems to turn-up new services, and diagnoses and troubleshoots network and customer issues, as well as systems for mobile device management, device analytics, and intelligence solutions for mobile operators. This segment focuses on Ethernet business services, network and customer experience management analytics, and field service test tools. The company was formerly known as Spirent plc and changed its name to Spirent Communications plc in May 2006. Spirent Communications plc was founded in 1936 and is headquartered in Crawley, the United Kingdom.

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