Financial Analysis: Consensus Cloud Solutions (CCSI) and Its Peers

Consensus Cloud Solutions (NASDAQ:CCSI) is one of 959 public companies in the “Software” industry, but how does it compare to its rivals? We will compare Consensus Cloud Solutions to similar companies based on the strength of its analyst recommendations, dividends, institutional ownership, profitability, valuation, earnings and risk.

Earnings and Valuation

This table compares Consensus Cloud Solutions and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Consensus Cloud Solutions	$349.70 million	$84.53 million	8.77
Consensus Cloud Solutions Competitors	$1.79 billion	$382.68 million	112.19

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Consensus Cloud Solutions and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Consensus Cloud Solutions	0	1	2	0	2.67
Consensus Cloud Solutions Competitors	5840	21618	45011	1501	2.57

Consensus Cloud Solutions presently has a consensus price target of $45.00, indicating a potential upside of 3.90%. As a group, “Software” companies have a potential upside of 28.46%. Given Consensus Cloud Solutions’ rivals higher probable upside, analysts plainly believe Consensus Cloud Solutions has less favorable growth aspects than its rivals.

Risk & Volatility

Consensus Cloud Solutions has a beta of 1.56, meaning that its stock price is 56% more volatile than the S&P 500. Comparatively, Consensus Cloud Solutions’ rivals have a beta of 1.35, meaning that their average stock price is 35% more volatile than the S&P 500.

Profitability

This table compares Consensus Cloud Solutions and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Consensus Cloud Solutions	26.42%	300.98%	13.75%
Consensus Cloud Solutions Competitors	-599.60%	26.31%	-8.93%

Institutional & Insider Ownership

93.9% of Consensus Cloud Solutions shares are owned by institutional investors. Comparatively, 41.5% of shares of all “Software” companies are owned by institutional investors. 3.6% of Consensus Cloud Solutions shares are owned by insiders. Comparatively, 19.9% of shares of all “Software” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Consensus Cloud Solutions beats its rivals on 7 of the 13 factors compared.

Consensus Cloud Solutions Company Profile

Consensus Cloud Solutions provides cloud-based digital information delivery and exchange services for healthcare organizations, businesses and government agencies. Its offerings include cloud fax solutions that allow users to send and receive documents electronically, along with tools designed to support secure data exchange and workflow integration. The company’s products include eFax and eFax Corporate, as well as solutions for connecting information systems and exchanging data. Its services are used in healthcare settings to help organizations share patient and administrative information, and in other industries for document-based communications.