Xperi Holding Corporation (NYSE:XPER) stands out in the “Services – Computer Programming and Data Processing” sector, demonstrating notable strengths when compared to its industry peers. The company’s performance is assessed across various metrics, including earnings, valuation, and institutional ownership, revealing that Xperi has a competitive edge in several key areas.
Profitability and Ownership Insights
Xperi’s profitability is highlighted by its strong net margins and returns on equity and assets. In terms of institutional ownership, an impressive 94.3% of Xperi shares are held by institutional investors, significantly higher than the industry average of 58.9%. This robust institutional backing suggests confidence from large financial entities regarding Xperi’s long-term performance.
In contrast, insider ownership at Xperi is comparatively lower at 2.1%, whereas the industry average stands at 21.2%. While insider ownership can indicate insider confidence, the high institutional ownership reflects a strong belief in the company’s future from major investors.
Analyst Ratings and Valuation Comparison
Analysts show a cautious outlook on Xperi compared to its competition. Companies within the same sector have a potential upside of 75.81%, indicating that analysts view them as having stronger growth prospects. Xperi’s consensus rating suggests that analysts perceive less favorable growth opportunities for the company compared to its peers.
When examining valuation, Xperi presents higher revenue and earnings per share (EPS) than many of its competitors. However, it is trading at a higher price-to-earnings (P/E) ratio, indicating a higher valuation compared to its industry counterparts. This suggests that investors are currently paying a premium for Xperi’s stock in anticipation of future growth.
Risk metrics reveal that Xperi’s stock is more volatile than its peers, with a beta of 1.31. This indicates a stock price that is 31% more volatile than the S&P 500 index. In contrast, the average beta for Xperi’s peers is 0.77, reflecting a more stable stock price.
Overall, Xperi excels in 8 out of 13 comparative metrics against its industry peers, showcasing its strengths in profitability and revenue generation.
Xperi operates globally from its headquarters in San Jose, California, focusing on consumer and entertainment product licensing. The company divides its operations into two main segments: Product and Intellectual Property Licensing. It specializes in a wide array of technologies, including audio, digital radio, imaging, and machine learning solutions. Xperi’s licensing extends to various sectors, including consumer electronics, automotive manufacturing, and new media.
The company operates under well-known brands such as DTS, HD Radio, IMAX Enhanced, Invensas, TiVo, and Perceive, reflecting its diverse offerings in the technology landscape.
As Xperi continues to navigate the competitive landscape, its financial metrics indicate a solid position within the industry, bolstered by strong institutional support and substantial revenue generation capabilities. Investors and analysts alike will be watching closely to see how Xperi capitalizes on its strengths and addresses challenges in the evolving market.
