Critical Comparison: Vuzix (VUZI) vs. Its Competitors

Vuzix (NASDAQ:VUZI) is one of 376 public companies in the “Electronic Equipment, Instruments & Components” industry, but how does it weigh in compared to its competitors? We will compare Vuzix to related companies based on the strength of its earnings, valuation, analyst recommendations, institutional ownership, profitability, risk and dividends.

Analyst Recommendations

This is a summary of current ratings and price targets for Vuzix and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vuzix	1	0	0	0	1.00
Vuzix Competitors	2048	7630	10467	668	2.47

As a group, “Electronic Equipment, Instruments & Components” companies have a potential upside of 32.94%. Given Vuzix’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Vuzix has less favorable growth aspects than its competitors.

Insider and Institutional Ownership

35.9% of Vuzix shares are owned by institutional investors. Comparatively, 43.5% of shares of all “Electronic Equipment, Instruments & Components” companies are owned by institutional investors. 7.3% of Vuzix shares are owned by company insiders. Comparatively, 16.4% of shares of all “Electronic Equipment, Instruments & Components” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Vuzix has a beta of 1.83, suggesting that its stock price is 83% more volatile than the S&P 500. Comparatively, Vuzix’s competitors have a beta of -0.30, suggesting that their average stock price is 130% less volatile than the S&P 500.

Profitability

This table compares Vuzix and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vuzix	-519.11%	-125.60%	-78.58%
Vuzix Competitors	-139.38%	-23.97%	-6.40%

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Vuzix	$6.28 million	-$32.27 million	-4.72
Vuzix Competitors	$4.06 billion	$173.71 million	3.48

Vuzix’s competitors have higher revenue and earnings than Vuzix. Vuzix is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Vuzix competitors beat Vuzix on 11 of the 12 factors compared.

About Vuzix

Vuzix Corporation develops and sells wearable display technology, smart glasses and augmented reality products. Its offerings include smart glasses for hands-free work and remote assistance, as well as optical waveguides, display engines and related components for use in its own products and by other manufacturers. The company’s products are designed for applications across sectors such as manufacturing, logistics, healthcare and field service. Vuzix serves customers internationally through direct sales and distribution partners.