Contrasting F5 Networks (FFIV) and Its Peers

F5 Networks (NASDAQ: FFIV) is one of 197 public companies in the “IT Services & Consulting” industry, but how does it contrast to its peers? We will compare F5 Networks to related companies based on the strength of its dividends, analyst recommendations, risk, valuation, profitability, earnings and institutional ownership.

Profitability

This table compares F5 Networks and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
F5 Networks 18.96% 33.85% 16.98%
F5 Networks Competitors -23.99% -65.39% -4.43%

Analyst Ratings

This is a breakdown of recent recommendations for F5 Networks and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
F5 Networks 1 14 4 0 2.16
F5 Networks Competitors 1004 5127 7744 220 2.51

F5 Networks presently has a consensus price target of $128.67, suggesting a potential upside of 10.33%. As a group, “IT Services & Consulting” companies have a potential upside of 2.96%. Given F5 Networks’ higher probable upside, analysts clearly believe F5 Networks is more favorable than its peers.

Earnings & Valuation

This table compares F5 Networks and its peers top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
F5 Networks $2.08 billion $627.75 million 19.34
F5 Networks Competitors $2.11 billion $365.95 million 11.99

F5 Networks’ peers have higher revenue, but lower earnings than F5 Networks. F5 Networks 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.

Insider and Institutional Ownership

96.5% of F5 Networks shares are owned by institutional investors. Comparatively, 61.0% of shares of all “IT Services & Consulting” companies are owned by institutional investors. 0.3% of F5 Networks shares are owned by company insiders. Comparatively, 17.0% of shares of all “IT Services & Consulting” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

F5 Networks has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500. Comparatively, F5 Networks’ peers have a beta of 1.26, suggesting that their average share price is 26% more volatile than the S&P 500.

Summary

F5 Networks beats its peers on 7 of the 13 factors compared.

F5 Networks Company Profile

F5 Networks, Inc. is a developer and provider of software defined application services. The Company is engaged in the development, marketing and sale of application delivery networking products that optimize the security, performance and availability of network applications, servers and storage systems. The Company’s geographical segments include the Americas (primarily the United States); Europe, the Middle East, and Africa (EMEA); Japan, and the Asia Pacific region (APAC). The Company’s Traffic Management Operating System (TMOS) based offerings include software products for local and global traffic management, network and application security, access management, Web acceleration and various network and application services. These products are available as modules that can run individually or as part of an integrated solution on the Company’s purpose-built BIG-IP appliances and VIPRION chassis-based hardware, or as software-only Virtual Editions.

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