Comparing Cray (CRAY) & Its Peers

Cray (NASDAQ: CRAY) is one of 81 public companies in the “COMPUTER/OFFICE EQUIP” industry, but how does it weigh in compared to its competitors? We will compare Cray to similar businesses based on the strength of its earnings, profitability, risk, valuation, institutional ownership, dividends and analyst recommendations.

Valuation and Earnings

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This table compares Cray and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Cray $392.51 million -$133.82 million -6.76
Cray Competitors $9.37 billion $967.64 million -13.92

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

Risk and Volatility

Cray has a beta of 1.57, meaning that its share price is 57% more volatile than the S&P 500. Comparatively, Cray’s competitors have a beta of 0.64, meaning that their average share price is 36% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Cray -34.10% -8.51% -6.11%
Cray Competitors -11.41% 1.77% -2.79%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Cray and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cray 0 0 5 0 3.00
Cray Competitors 767 3314 5864 250 2.55

Cray currently has a consensus price target of $27.20, suggesting a potential upside of 21.16%. As a group, “COMPUTER/OFFICE EQUIP” companies have a potential upside of 9.43%. Given Cray’s stronger consensus rating and higher possible upside, research analysts plainly believe Cray is more favorable than its competitors.

Institutional and Insider Ownership

97.1% of Cray shares are owned by institutional investors. Comparatively, 52.2% of shares of all “COMPUTER/OFFICE EQUIP” companies are owned by institutional investors. 4.0% of Cray shares are owned by insiders. Comparatively, 13.5% of shares of all “COMPUTER/OFFICE EQUIP” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Cray competitors beat Cray on 7 of the 12 factors compared.

Cray Company Profile

Cray Inc. is engaged in designing, developing, manufacturing, marketing and servicing the high performance computing (HPC) market, primarily categories of systems known as supercomputers. The Company’s segments include Supercomputing, Storage and Data Management, Maintenance and Support, and Engineering Services and Other. The Supercomputing segment includes a suite of supercomputer systems, which are used by engineering centers in universities, government laboratories, and commercial institutions. The Storage and Data Management segment includes Cray Data Warp and Sonexion, as well as other third-party storage products and their ongoing maintenance and system analysts. The Maintenance and Support segment provides ongoing maintenance of Cray supercomputers, big data storage and analytics systems, as well as system analysts. The Engineering Services and Other segment includes the Company’s analytics business and Custom Engineering.

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