Head to Head Analysis: Aviat Networks (AVNW) versus Its Competitors

Aviat Networks (NASDAQ:AVNW) 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 Aviat Networks to similar businesses based on the strength of its dividends, earnings, risk, profitability, valuation, institutional ownership and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Aviat Networks	-0.10%	4.10%	1.77%
Aviat Networks Competitors	5.68%	-5.38%	3.11%

Analyst Recommendations

This is a breakdown of current recommendations for Aviat Networks and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aviat Networks	1	1	8	0	2.70
Aviat Networks Competitors	1078	4039	7106	383	2.54

Aviat Networks currently has a consensus price target of $32.57, suggesting a potential upside of 92.73%. As a group, “Communications Equipment” companies have a potential upside of 42.21%. Given Aviat Networks’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Aviat Networks is more favorable than its peers.

Insider and Institutional Ownership

78.6% of Aviat Networks shares are owned by institutional investors. Comparatively, 44.4% of shares of all “Communications Equipment” companies are owned by institutional investors. 5.7% of Aviat Networks shares are owned by company insiders. Comparatively, 18.4% of shares of all “Communications Equipment” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Aviat Networks	$434.33 million	$2.54 million	-422.50
Aviat Networks Competitors	$5.63 billion	$292.54 million	-3.17

Aviat Networks’ peers have higher revenue and earnings than Aviat Networks. Aviat Networks 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.

Risk and Volatility

Aviat Networks has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500. Comparatively, Aviat Networks’ peers have a beta of 1.17, indicating that their average share price is 17% more volatile than the S&P 500.

Summary

Aviat Networks peers beat Aviat Networks on 8 of the 13 factors compared.

Aviat Networks Company Profile

Aviat Networks, Inc. provides wireless transport solutions used to build and operate communications networks. Its offerings include microwave radio systems and related equipment that carry voice and data traffic, particularly where fiber-optic connections are unavailable, impractical or need to be supplemented. The company also offers IP networking products, network management software and services such as network planning, installation, maintenance and technical support. Its solutions serve telecommunications providers as well as customers in sectors including utilities, government and public safety.