Extreme Networks (EXTR) and Its Rivals Head to Head Contrast

Extreme Networks (NASDAQ:EXTR) is one of 110 publicly-traded companies in the “Communications Equipment” industry, but how does it contrast to its rivals? We will compare Extreme Networks to similar companies based on the strength of its dividends, valuation, earnings, profitability, institutional ownership, analyst recommendations and risk.

Volatility and Risk

Extreme Networks has a beta of 1.81, indicating that its stock price is 81% more volatile than the S&P 500. Comparatively, Extreme Networks’ rivals have a beta of 1.17, indicating that their average stock price is 17% more volatile than the S&P 500.

Profitability

This table compares Extreme Networks and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Extreme Networks	3.99%	102.41%	7.47%
Extreme Networks Competitors	5.57%	-5.33%	3.13%

Earnings & Valuation

This table compares Extreme Networks and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Extreme Networks	$1.28 billion	$42.12 million	66.45
Extreme Networks Competitors	$2.74 billion	$292.54 million	4.84

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

Insider and Institutional Ownership

91.0% of Extreme Networks shares are held by institutional investors. Comparatively, 44.4% of shares of all “Communications Equipment” companies are held by institutional investors. 3.2% of Extreme Networks shares are held by company insiders. Comparatively, 18.4% of shares of all “Communications Equipment” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations for Extreme Networks and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Extreme Networks	0	2	7	1	2.90
Extreme Networks Competitors	1077	4036	7105	383	2.54

Extreme Networks currently has a consensus price target of $33.86, indicating a potential upside of 30.65%. As a group, “Communications Equipment” companies have a potential upside of 40.86%. Given Extreme Networks’ rivals higher possible upside, analysts plainly believe Extreme Networks has less favorable growth aspects than its rivals.

Summary

Extreme Networks beats its rivals on 8 of the 13 factors compared.

Extreme Networks Company Profile

Extreme Networks, Inc. develops networking products and software for businesses and other organizations. Its offerings include wired and wireless network infrastructure, such as switches and Wi-Fi access points, along with cloud-based tools for managing, monitoring and securing networks. The company also provides network analytics, support and professional services. Its solutions are used across industries including education, healthcare, government, retail and hospitality. Founded in 1996, Extreme Networks has expanded through acquisitions, including Enterasys Networks and networking businesses from Brocade and Avaya.