Head to Head Survey: Alcatel Lucent (ALU) and Its Peers

Alcatel Lucent (NYSE: ALU) is one of 65 public companies in the “Communications & Networking” industry, but how does it compare to its rivals? We will compare Alcatel Lucent to related businesses based on the strength of its earnings, valuation, risk, profitability, analyst recommendations, institutional ownership and dividends.

Earnings and Valuation

This table compares Alcatel Lucent and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Alcatel Lucent N/A N/A 43.38
Alcatel Lucent Competitors $3.38 billion $382.14 million -135.54

Alcatel Lucent’s rivals have higher revenue and earnings than Alcatel Lucent. Alcatel Lucent 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.

Analyst Recommendations

This is a summary of current ratings and target prices for Alcatel Lucent and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alcatel Lucent 0 0 0 0 N/A
Alcatel Lucent Competitors 438 2482 4068 163 2.55

As a group, “Communications & Networking” companies have a potential upside of 13.66%. Given Alcatel Lucent’s rivals higher possible upside, analysts clearly believe Alcatel Lucent has less favorable growth aspects than its rivals.

Profitability

This table compares Alcatel Lucent and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alcatel Lucent 14.83% 86.14% 10.96%
Alcatel Lucent Competitors -3.65% -10.31% -1.26%

Institutional and Insider Ownership

63.2% of shares of all “Communications & Networking” companies are owned by institutional investors. 13.5% of shares of all “Communications & Networking” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Alcatel Lucent has a beta of 2.05, indicating that its stock price is 105% more volatile than the S&P 500. Comparatively, Alcatel Lucent’s rivals have a beta of 1.12, indicating that their average stock price is 12% more volatile than the S&P 500.

Summary

Alcatel Lucent beats its rivals on 5 of the 9 factors compared.

About Alcatel Lucent

Alcatel Lucent SA is a provider of Internet protocol (IP) networking, ultra-broadband access and cloud technology solutions. The Company operates through two segments for the networks business. The Ultra Broadband Networks segment consists of Mobile Networks and Fixed Networks business groups. The IP Networks and Applications segment consists of Internet protocol (IP)/Optical Networks and Applications and Analytics business groups. Its other segment consists of businesses run as separate operations (Alcatel Submarine Networks and Radio Frequency Systems (RFS)). The Company offers a range of solutions, including Communications and collaboration, IP Core Routing, IP/optical integration, long term evolution (LTE) Ultra-Broadband, Software-defined networking and Vplus. The Company offers a range of consulting, managed, maintenance and professional services, including Bell Labs Consulting and Build, Operate and Manage (BOM) Solution for Mobility Networks. The main shareholder is Nokia.

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