New Relic (NYSE: NEWR) is one of 65 publicly-traded companies in the “Application Software” industry, but how does it contrast to its rivals? We will compare New Relic to similar businesses based on the strength of its profitability, valuation, earnings, institutional ownership, analyst recommendations, dividends and risk.

Profitability

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

Net Margins Return on Equity Return on Assets
New Relic -19.43% -29.19% -16.09%
New Relic Competitors -72.29% -100.23% -18.91%

Earnings & Valuation

This table compares New Relic and its rivals gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
New Relic $263.48 million -$61.07 million -48.93
New Relic Competitors $980.90 million $67.84 million 427.78

New Relic’s rivals have higher revenue and earnings than New Relic. New Relic 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 Ratings

This is a summary of current recommendations and price targets for New Relic and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
New Relic 0 2 11 0 2.85
New Relic Competitors 187 1545 2937 97 2.62

New Relic currently has a consensus price target of $52.75, indicating a potential downside of 2.87%. As a group, “Application Software” companies have a potential upside of 12.71%. Given New Relic’s rivals higher probable upside, analysts clearly believe New Relic has less favorable growth aspects than its rivals.

Institutional and Insider Ownership

73.3% of New Relic shares are held by institutional investors. Comparatively, 68.1% of shares of all “Application Software” companies are held by institutional investors. 23.1% of New Relic shares are held by company insiders. Comparatively, 15.7% of shares of all “Application Software” companies are held by company 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

New Relic beats its rivals on 7 of the 11 factors compared.

New Relic Company Profile

New Relic, Inc. (New Relic) is a provider of enterprise software. The Company’s cloud-based platform and range of products enable organizations to collect, store and analyze software data in real time. The Company’s New Relic Software Analytics Cloud consists of an integrated suite of products, a data database and an open platform. New Relic offers an integrated suite of products, namely, New Relic APM, for application performance management; New Relic Mobile, for mobile application performance management; New Relic Servers, for server monitoring for cloud and data centers; New Relic Browser, for end user experience monitoring and performance monitoring; New Relic Synthetics, for software testing through simulated usage; New Relic Plugins, plugins to extend its functionality into other applications; New Relic Alerts, for policy management and delivering alerts across entire suite of products, and New Relic Insights, for real-time big data analytics for business managers.

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