Financial Comparison: Oclaro (OCLR) & Its Competitors

Oclaro (NASDAQ: OCLR) is one of 67 public companies in the “Communications & Networking” industry, but how does it compare to its competitors? We will compare Oclaro to related businesses based on the strength of its analyst recommendations, valuation, dividends, earnings, risk, profitability and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
Oclaro 21.28% 27.63% 20.69%
Oclaro Competitors -1.68% -6.44% 0.52%

Volatility & Risk

Oclaro has a beta of 1.61, indicating that its stock price is 61% more volatile than the S&P 500. Comparatively, Oclaro’s competitors have a beta of 1.17, indicating that their average stock price is 17% more volatile than the S&P 500.

Insider & Institutional Ownership

70.5% of Oclaro shares are owned by institutional investors. Comparatively, 64.0% of shares of all “Communications & Networking” companies are owned by institutional investors. 2.3% of Oclaro shares are owned by insiders. Comparatively, 13.4% of shares of all “Communications & Networking” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Oclaro and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oclaro 0 0 10 2 3.17
Oclaro Competitors 472 2687 4043 194 2.54

Oclaro currently has a consensus target price of $13.27, indicating a potential upside of 46.32%. As a group, “Communications & Networking” companies have a potential upside of 27.32%. Given Oclaro’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Oclaro is more favorable than its competitors.

Earnings and Valuation

This table compares Oclaro and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Oclaro $600.97 million $140.44 million 12.09
Oclaro Competitors $2.87 billion $625.83 million 26.52

Oclaro’s competitors have higher revenue and earnings than Oclaro. Oclaro 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.

Summary

Oclaro beats its competitors on 9 of the 13 factors compared.

Oclaro Company Profile

Oclaro, Inc. is a provider of optical components, modules and subsystems for the core optical transport, service provider, enterprise and data center markets. The Company provides various solutions for optical networks and interconnects driving the next wave of streaming video, cloud computing, application virtualization and other bandwidth-intensive and high-speed applications. The Company’s product offerings include client side transceivers, line side transceivers, tunable laser transmitters, lithium niobate modulators, transponder modules, and discrete lasers and receivers. It designs, manufactures and markets optical components, modules and subsystems that generate, detect, combine and separate light signals in optical communications networks. The Company supplies transmission products at the component level and the module level into 10 gigabits per second (Gb/s), 40 Gb/s and 100 Gb/s communications solutions.

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