Financial Comparison: Calix (CALX) vs. Its Competitors

Calix (NYSE:CALX) is one of 110 publicly-traded companies in the “Communications Equipment” industry, but how does it weigh in compared to its peers? We will compare Calix to related businesses based on the strength of its dividends, institutional ownership, earnings, risk, analyst recommendations, profitability and valuation.

Institutional & Insider Ownership

98.1% of Calix shares are owned by institutional investors. Comparatively, 44.4% of shares of all “Communications Equipment” companies are owned by institutional investors. 17.4% of Calix shares are owned by insiders. Comparatively, 18.4% of shares of all “Communications Equipment” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Calix and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Calix	0	2	5	0	2.71
Calix Competitors	1074	4031	7098	382	2.54

Calix currently has a consensus price target of $55.80, suggesting a potential upside of 73.13%. As a group, “Communications Equipment” companies have a potential upside of 46.25%. Given Calix’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Calix is more favorable than its peers.

Valuation and Earnings

This table compares Calix and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Calix	$1.15 billion	$17.88 million	47.40
Calix Competitors	$5.63 billion	$292.54 million	4.29

Calix’s peers have higher revenue and earnings than Calix. Calix 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.

Volatility and Risk

Calix has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500. Comparatively, Calix’s peers have a beta of 1.17, meaning that their average share price is 17% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Calix	3.99%	5.67%	4.39%
Calix Competitors	5.56%	-5.22%	3.19%

Summary

Calix beats its peers on 8 of the 13 factors compared.

Calix Company Profile

Calix, Inc., together with its subsidiaries, engages in the provision of cloud and software platforms, and systems and services in the United States, rest of Americas, Europe, the Middle East, Africa, and the Asia Pacific. Its cloud and software platforms, and systems and services enable broadband service providers (BSPs) to provide a range of services. The company provides Calix Cloud platform, a role-based analytics platform comprising Calix Engagement Cloud, Calix Service Cloud, and Calix Operations Cloud, which are configurable to display role-based insights and enable BSPs to anticipate and target new revenue-generating services and applications through mobile application, such as CommandIQ for residents and CommandWorx for businesses; Calix Intelligent Access EDGE, an access network solution for automated and intelligent networks; and Calix Revenue EDGE, a premises solution for subscriber managed services. It also offers SmartLife managed services, including SmartHome managed services and applications to enhance, operate and secure the connected experience of subscribers in their home; SmartTown managed services that reimagine community Wi-Fi as a ubiquitous, secure, and managed experience across a BSP's footprint; and SmartBiz managed services that address the business networking and productivity needs of business owners with an all-in-one managed service. In addition, the company provides Wi-Fi systems under GigaSpire and GigaPro brands to be ready for deployment as a complete subscriber experience solution for BSP's residential and business subscribers. It offers its products through its direct sales force and resellers. The company was incorporated in 1999 and is headquartered in San Jose, California.