Financial Comparison: Xunlei (XNET) vs. Its Rivals

Xunlei (NASDAQ:XNET) is one of 953 public companies in the “Software” industry, but how does it weigh in compared to its peers? We will compare Xunlei to related businesses based on the strength of its risk, dividends, analyst recommendations, profitability, valuation, earnings and institutional ownership.

Risk & Volatility

Xunlei has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500. Comparatively, Xunlei’s peers have a beta of 1.34, indicating that their average share price is 34% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Xunlei	-15.25%	0.62%	0.52%
Xunlei Competitors	-612.69%	20.88%	-8.98%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Xunlei and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xunlei	0	1	0	0	2.00
Xunlei Competitors	5730	21457	44750	1492	2.57

As a group, “Software” companies have a potential upside of 26.24%. Given Xunlei’s peers stronger consensus rating and higher possible upside, analysts clearly believe Xunlei has less favorable growth aspects than its peers.

Valuation & Earnings

This table compares Xunlei and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Xunlei	$494.81 million	$1.05 billion	-2.84
Xunlei Competitors	$1.81 billion	$385.92 million	109.83

Xunlei’s peers have higher revenue, but lower earnings than Xunlei. Xunlei 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.

Institutional & Insider Ownership

5.1% of Xunlei shares are held by institutional investors. Comparatively, 41.8% of shares of all “Software” companies are held by institutional investors. 21.7% of Xunlei shares are held by insiders. Comparatively, 19.9% of shares of all “Software” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Xunlei peers beat Xunlei on 9 of the 13 factors compared.

Xunlei Company Profile

Xunlei Limited, together with its subsidiaries, operates an internet platform for digital media content in the People's Republic of China. Its platform is based on cloud technology that enables users to access, store, manage, and consume digital media content. The company offers Xunlei Accelerator, which enables users to accelerate digital transmission over the internet; mobile acceleration plug-in, which provides mobile device users with benefits of download speed acceleration and download success rate improvements; and subscription services that offer users premium services through Green Channel and Fast Bird products. It also provides Mobile Xunlei, a mobile application that allows users to search, download, consume, and store digital media content; Xunlei Media Player, which supports online and offline play of digital media content, as well as simultaneous play of digital media content while it is being transmitted by Xunlei Accelerator; online games through online game website and mobile app; advertising services; live streaming products, including video and audio livestreaming; and develops software and computer software, as well as other internet value-added services. In addition, the company offers cloud computing services through OneThing Cloud, and StellarCloud; and hardware for edging computing, such as OneThing Edge Cube, and OneThing Edge Atom. Further it offers ThunderChain, a blockchain infrastructure product that enables its users to develop and manage blockchain applications. The company was formerly known as Giganology Limited and changed its name to Xunlei Limited in January 2011. Xunlei Limited was founded in 2003 and is headquartered in Shenzhen, the People's Republic of China.