Juniper Networks (JNPR) vs. Its Peers Critical Review

Juniper Networks (NYSE: JNPR) is one of 25 public companies in the “Computer & office equipment” industry, but how does it compare to its competitors? We will compare Juniper Networks to similar companies based on the strength of its analyst recommendations, institutional ownership, valuation, earnings, risk, profitability and dividends.

Dividends

Juniper Networks pays an annual dividend of $0.72 per share and has a dividend yield of 2.9%. Juniper Networks pays out 41.6% of its earnings in the form of a dividend. As a group, “Computer & office equipment” companies pay a dividend yield of 3.3% and pay out 43.9% of their earnings in the form of a dividend.



Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Juniper Networks and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Juniper Networks 2 17 9 0 2.25
Juniper Networks Competitors 310 1737 2313 86 2.49

Juniper Networks presently has a consensus price target of $28.47, suggesting a potential upside of 14.56%. As a group, “Computer & office equipment” companies have a potential upside of 4.44%. Given Juniper Networks’ higher probable upside, equities analysts clearly believe Juniper Networks is more favorable than its competitors.

Institutional and Insider Ownership

95.5% of Juniper Networks shares are held by institutional investors. Comparatively, 54.5% of shares of all “Computer & office equipment” companies are held by institutional investors. 2.6% of Juniper Networks shares are held by company insiders. Comparatively, 13.3% of shares of all “Computer & office equipment” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Juniper Networks and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Juniper Networks $5.03 billion $306.20 million 14.36
Juniper Networks Competitors $12.01 billion $456.58 million 19.21

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

Risk & Volatility

Juniper Networks has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500. Comparatively, Juniper Networks’ competitors have a beta of 0.78, indicating that their average stock price is 22% less volatile than the S&P 500.

Profitability

This table compares Juniper Networks and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Juniper Networks 6.26% 13.34% 6.83%
Juniper Networks Competitors -2.03% -4.50% 3.28%

Summary

Juniper Networks competitors beat Juniper Networks on 8 of the 15 factors compared.

Juniper Networks Company Profile

Juniper Networks, Inc. designs, develops and sells products and services for high-performance networks to enable customers to build networks for their businesses. The Company sells its products in over 100 countries in three geographic regions: Americas; Europe, the Middle East and Africa, and Asia Pacific. The Company sells its high-performance network products and service offerings across routing, switching and security. Its products address network requirements for global service providers, cloud providers, national governments, research and public sector organizations, and other enterprises. The Company offers its customers various services, including technical support, professional services, education and training programs. The Company’s Junos Platform enables its customers to expand network software into the application space, and deploy software clients to control delivery. The Junos Platform includes a range of products, such as Junos Operating System (OS) and Junos Space.

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