Contrasting Lenovo Group (LNVGY) and Its Competitors

Lenovo Group (OTCMKTS:LNVGY) is one of 81 public companies in the “Technology Hardware, Storage & Peripherals” industry, but how does it contrast to its peers? We will compare Lenovo Group to related businesses based on the strength of its earnings, analyst recommendations, dividends, profitability, institutional ownership, valuation and risk.

Analyst Recommendations

This is a summary of current recommendations and price targets for Lenovo Group and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lenovo Group	0	1	0	1	3.00
Lenovo Group Competitors	1050	4280	7551	357	2.55

As a group, “Technology Hardware, Storage & Peripherals” companies have a potential upside of 20.98%. Given Lenovo Group’s peers higher probable upside, analysts plainly believe Lenovo Group has less favorable growth aspects than its peers.

Earnings & Valuation

This table compares Lenovo Group and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Lenovo Group	$83.08 billion	$1.91 billion	74.19
Lenovo Group Competitors	$23.84 billion	$3.72 billion	7.22

Lenovo Group has higher revenue, but lower earnings than its peers. Lenovo Group is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Institutional and Insider Ownership

0.1% of Lenovo Group shares are held by institutional investors. Comparatively, 51.5% of shares of all “Technology Hardware, Storage & Peripherals” companies are held by institutional investors. 10.8% of shares of all “Technology Hardware, Storage & Peripherals” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Lenovo Group pays an annual dividend of $1.68 per share and has a dividend yield of 2.2%. Lenovo Group pays out 163.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Technology Hardware, Storage & Peripherals” companies pay a dividend yield of 3.5% and pay out 41.6% of their earnings in the form of a dividend. Lenovo Group lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lenovo Group	0.88%	34.51%	5.14%
Lenovo Group Competitors	-493.26%	-14.53%	4.44%

Risk and Volatility

Lenovo Group has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500. Comparatively, Lenovo Group’s peers have a beta of 1.55, suggesting that their average share price is 55% more volatile than the S&P 500.

Summary

Lenovo Group peers beat Lenovo Group on 8 of the 15 factors compared.

Lenovo Group Company Profile

Lenovo Group Limited, an investment holding company, develops, manufactures, and markets technology products and services. It operates through Intelligent Devices Group, Infrastructure Solutions Group, and Solutions and Services Group segments. The company offers commercial and consumer personal computers, as well as servers and workstations; and a family of mobile Internet devices, including tablets and smartphones. In addition, it provides laptops, monitors, accessories, smart home and collaboration solutions, augmented and virtual reality, commercial internet of things, and smart infrastructure data center solutions. Further, the company manufactures and distributes IT products, computers, computer hardware, and peripheral equipment; and offers IT, business planning, management, supply chain, finance, administration support, procurement agency, data management, intellectual property, and investment management services. Additionally, it is involved in the retail and service business for consumer electronic products and related digital services; development, ownership, licensing, and sale of communications hardware and software; and develops software and applications. Furthermore, the company distributes smartphone, tablet, server, and storage. It operates in China, the Asia Pacific, Europe, the Middle East, Africa, and the Americas. Lenovo Group Limited was founded in 1984 and is headquartered in Quarry Bay, Hong Kong.