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How Does F5 Networks Compare to Its Peers?

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F5 Networks and its peers

In this part of the series, we’ll compare F5 Networks (FFIV) to its industry peers.

  • The PE (price-to-earnings) ratios of F5 Networks (FFIV), Hewlett-Packard (HPQ), and Citrix Systems (CTXS) are 24.56x, 11.42x, and 49.80x, respectively.
  • The PBV (price-to-book value) ratios of F5 Networks, Hewlett-Packard, Citrix, Juniper Networks (JNPR), and Fortinet (FTNT) are 6.54x, 1.87x, 6.09x, 2.91x, and 7.91x, respectively.

  • The PS (price-to-sales) ratios of F5 Networks, Hewlett-Packard, Citrix, Juniper, and Fortinet are 4.57x, 0.47x, 4.27x, 2.70x, and 6.88x, respectively.

F5 Networks has outperformed its peers based on PBV and PS.

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ETFs that invest in F5 Networks

The iShares North American Technology-Multimedia Networking ETF (IGN) invests 4.3% of its holdings in F5 Networks. The ETF tracks a market-cap–weighted index of US and Canadian multimedia networking companies.

The First Trust ISE Cloud Computing ETF (SKYY) invests 3.8% of its holdings in F5 Networks. The ETF tracks a tiered equal-weighted index of companies involved in the cloud computing industry.

The PowerShares Dynamic Network ETF (PXQ) invests 2.6% of its holdings in F5 Network. The ETF tracks a quantitatively driven index that selects 30 US networking companies it believes will outperform, weighting them in tiers.

F5 Networks compared to its ETFs

Now let’s see how F5 Networks compares to the ETFs that invest in it.

  • The year-to-date price movements of F5, IGN, SKYY, and PXQ are -7.0%, 2.7%, 7.1%, and 2.1%, respectively.
  • The PE (price-to-earnings) ratios of F5, IGN, SKYY, and PXQ are 24.56x, 37.07x, 38.47x, and 44.62x, respectively.
  • The PBV (price-to-book value) ratios of F5, IGN, SKYY, and PXQ are 6.54x, 2.80x, 3.75x, and 3.46x, respectively.

According to the above figures, ETFs have outperformed F5 Networks based on price movement and PE. However, F5 Networks is way ahead of its ETFs based on PBV.

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