Avaya (NYSE: AVYA) is one of 26 publicly-traded companies in the “Telephone & telegraph apparatus” industry, but how does it weigh in compared to its peers? We will compare Avaya to related companies based on the strength of its valuation, risk, analyst recommendations, earnings, institutional ownership, profitability and dividends.
Risk & Volatility
Avaya has a beta of 1.56, meaning that its stock price is 56% more volatile than the S&P 500. Comparatively, Avaya’s peers have a beta of 4.69, meaning that their average stock price is 369% more volatile than the S&P 500.
43.8% of shares of all “Telephone & telegraph apparatus” companies are held by institutional investors. 0.7% of Avaya shares are held by insiders. Comparatively, 19.9% of shares of all “Telephone & telegraph apparatus” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Avaya and its peers gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Avaya||$2.89 billion||-$671.00 million||2.87|
|Avaya Competitors||$717.17 million||-$49.68 million||10.70|
Avaya has higher revenue, but lower earnings than its peers. Avaya 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.
This table compares Avaya and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings for Avaya and its peers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Avaya presently has a consensus price target of $18.71, indicating a potential upside of 66.65%. As a group, “Telephone & telegraph apparatus” companies have a potential upside of 27.89%. Given Avaya’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Avaya is more favorable than its peers.
Avaya beats its peers on 7 of the 13 factors compared.
Avaya Holdings Corp., through its subsidiaries, provides digital communications products, solutions, and services for businesses worldwide. The company operates through two segments, Products & Solutions, and Services. The Products & Solutions segment offers unified communications and contact center platforms, applications, and devices. It also provides an open development platform for customers and third parties to create custom applications and automated workflows for their needs; and contact center solutions that enable customers to build a customized portfolio of applications driving customer engagement and customer value. This segments communications solutions include voice, email, chat, social media, video, and performance management. The Services segment provides global support services, enterprise cloud and managed services, and professional services. The company also delivers cloud business communications services and solutions to connect with customers. Avaya Holdings Corp. sells directly through its sales force, as well as indirectly through its network of channel partners, including distributors, service providers, dealers, value-added resellers, system integrators, and business partners. The company is based in Santa Clara, California.
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