Xperi Holding Corporation (NYSE: XPER) stands out among its peers in the “Services – Computer Programming and Data Processing” sector, showcasing notable strengths in several key financial metrics. A recent comparative analysis highlights how Xperi measures up against 43 other publicly-traded companies within the same industry.
Ownership and Institutional Investment
A significant portion of Xperi’s shares, approximately 94.3%, is held by institutional investors, well above the average of 58.9% for the sector. This high level of institutional ownership indicates confidence among large investors that Xperi will outperform the market over the long term. On the other hand, only 2.1% of Xperi’s shares are owned by company insiders, compared to the sector’s average of 21.2%. This disparity suggests a different ownership structure that may influence investor perception.
Dividend Performance
Xperi offers an annual dividend of $0.20 per share, resulting in a dividend yield of 3.5%. However, the company faces challenges with a payout ratio of 125.0%, indicating it distributes more in dividends than it earns. In contrast, the broader sector has a higher average dividend yield of 11.6% and a significantly negative payout ratio of -720.8%. This positions Xperi less favorably within its peer group regarding dividend reliability.
Recent data from MarketBeat.com reveals that Xperi’s competitors anticipate a higher potential upside, averaging 79.71% compared to Xperi’s growth prospects. Analysts suggest that this perception of lesser growth potential could affect investor interest in Xperi relative to its competitors.
Profitability metrics such as net margin, return on equity, and return on assets further illustrate the financial landscape. Although Xperi demonstrates higher revenue and earnings compared to its rivals, it trades at a higher price-to-earnings ratio, indicating that the market currently values its shares more steeply than those of its competitors.
The comparative analysis indicates that Xperi outperforms its rivals on 10 out of 15 key factors. This comprehensive overview highlights both the strengths and the areas for improvement for Xperi as it navigates the competitive landscape.
Company Overview
Xperi Holding Corporation, headquartered in San Jose, California, operates as a global consumer and entertainment product licensing firm. The company is divided into two primary segments: Product and Intellectual Property Licensing. Xperi is known for its innovative technologies, including audio, digital radio, imaging, and machine learning solutions, which it licenses to various industries, including consumer electronics and automotive manufacturing.
Xperi’s brand portfolio includes well-known names such as DTS, HD Radio, IMAX Enhanced, Invensas, TiVo, and Perceive. The company’s licensing activities extend to multichannel video programming distributors, over-the-top (OTT) service providers, and semiconductor manufacturers, demonstrating a diverse and expansive operational footprint.
In summary, while Xperi exhibits solid performance in several areas, its challenges in dividend sustainability and market growth potential highlight the competitive dynamics within the “Services – Computer Programming and Data Processing” sector. Investors may wish to monitor these developments as Xperi continues to position itself in a rapidly evolving market.
