Benefitfocus (NASDAQ: BNFT) is one of 97 public companies in the “Enterprise Software” industry, but how does it contrast to its rivals? We will compare Benefitfocus to similar companies based on the strength of its risk, earnings, profitability, analyst recommendations, valuation, institutional ownership and dividends.

Insider and Institutional Ownership

84.6% of Benefitfocus shares are owned by institutional investors. Comparatively, 59.4% of shares of all “Enterprise Software” companies are owned by institutional investors. 40.1% of Benefitfocus shares are owned by company insiders. Comparatively, 23.4% of shares of all “Enterprise Software” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for Benefitfocus and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Benefitfocus 0 2 7 0 2.78
Benefitfocus Competitors 342 2024 3867 107 2.59

Benefitfocus currently has a consensus price target of $40.00, indicating a potential upside of 22.89%. As a group, “Enterprise Software” companies have a potential upside of 3.12%. Given Benefitfocus’ stronger consensus rating and higher possible upside, equities analysts clearly believe Benefitfocus is more favorable than its rivals.

Profitability

This table compares Benefitfocus and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Benefitfocus -11.24% N/A -16.22%
Benefitfocus Competitors -24.77% -412.72% -8.11%

Valuation and Earnings

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

Gross Revenue EBITDA Price/Earnings Ratio
Benefitfocus $248.19 million -$6.36 million -35.38
Benefitfocus Competitors $1.27 billion $348.14 million 36.48

Benefitfocus’ rivals have higher revenue and earnings than Benefitfocus. Benefitfocus 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.

Volatility and Risk

Benefitfocus has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500. Comparatively, Benefitfocus’ rivals have a beta of 1.13, suggesting that their average share price is 13% more volatile than the S&P 500.

Summary

Benefitfocus beats its rivals on 8 of the 12 factors compared.

About Benefitfocus

Benefitfocus, Inc. (Benefitfocus) is a provider of cloud-based benefits management platform for consumers, employers, insurance carriers and brokers. The Benefitfocus Platform allows how organizations and individuals shop for, enroll in, manage and exchange benefits. The Company operates through two business segments: Employer, which derives its revenue from customers that use the Company’s services for the provision of benefits to their employees, and administrators acting on behalf of employers, Carrier, which derives its revenue from insurance companies that provide coverage at their own risk. Its solutions support benefits plans, including healthcare, dental, life and disability insurance, and voluntary benefits plans, such as critical illness, supplemental income and wellness programs. It provides a multi-tenant cloud-based benefits management platform to the employer and carrier markets.

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