Analyzing Avaya (AVYA) & Its Competitors

Avaya (NYSE: AVYA) is one of 26 publicly-traded companies in the “Telephone & telegraph apparatus” industry, but how does it weigh in compared to its peers? We will compare Avaya to similar companies based on the strength of its valuation, earnings, risk, dividends, analyst recommendations, institutional ownership and profitability.

Institutional & Insider Ownership

43.8% of shares of all “Telephone & telegraph apparatus” companies are owned by institutional investors. 0.7% of Avaya shares are owned by insiders. Comparatively, 20.9% of shares of all “Telephone & telegraph apparatus” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Avaya $2.89 billion -$671.00 million 3.08
Avaya Competitors $717.17 million -$49.68 million 10.14

Avaya has higher revenue, but lower earnings than its peers. Avaya 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Avaya -23.24% 13.33% 3.41%
Avaya Competitors -104.74% -6.01% -1.08%

Risk & Volatility

Avaya has a beta of 1.56, meaning that its share price is 56% more volatile than the S&P 500. Comparatively, Avaya’s peers have a beta of 4.71, meaning that their average share price is 371% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Avaya and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avaya 0 3 4 0 2.57
Avaya Competitors 199 623 1051 47 2.49

Avaya currently has a consensus price target of $18.71, indicating a potential upside of 55.56%. As a group, “Telephone & telegraph apparatus” companies have a potential upside of 36.93%. Given Avaya’s stronger consensus rating and higher possible upside, equities analysts plainly believe Avaya is more favorable than its peers.

Summary

Avaya beats its peers on 7 of the 13 factors compared.

About Avaya

Avaya Holdings Corp., through its subsidiaries, provides digital communications products, solutions, and services for businesses worldwide. The company operates through two segments, Products & Solutions, and Services. The Products & Solutions segment offers unified communications and contact center platforms, applications, and devices. It also provides an open development platform for customers and third parties to create custom applications and automated workflows for their needs; and contact center solutions that enable customers to build a customized portfolio of applications driving customer engagement and customer value. This segments communications solutions include voice, email, chat, social media, video, and performance management. The Services segment provides global support services, enterprise cloud and managed services, and professional services. The company also delivers cloud business communications services and solutions to connect with customers. Avaya Holdings Corp. sells directly through its sales force, as well as indirectly through its network of channel partners, including distributors, service providers, dealers, value-added resellers, system integrators, and business partners. The company is based in Santa Clara, California.

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