Rapid7 (NASDAQ: RPD) is one of 118 publicly-traded companies in the “Software” industry, but how does it contrast to its rivals? We will compare Rapid7 to similar companies based on the strength of its risk, institutional ownership, analyst recommendations, profitability, earnings, dividends and valuation.

Insider & Institutional Ownership

71.0% of Rapid7 shares are owned by institutional investors. Comparatively, 61.0% of shares of all “Software” companies are owned by institutional investors. 56.9% of Rapid7 shares are owned by company insiders. Comparatively, 17.8% of shares of all “Software” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Rapid7 and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rapid7 -23.67% -98.26% -16.93%
Rapid7 Competitors -41.94% -25.07% -9.86%

Valuation and Earnings

This table compares Rapid7 and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Rapid7 $178.06 million -$36.89 million -17.60
Rapid7 Competitors $1.51 billion $446.17 million 41.55

Rapid7’s rivals have higher revenue and earnings than Rapid7. Rapid7 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.

Risk & Volatility

Rapid7 has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500. Comparatively, Rapid7’s rivals have a beta of 0.98, suggesting that their average stock price is 2% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Rapid7 and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rapid7 0 1 5 0 2.83
Rapid7 Competitors 389 2316 4403 115 2.59

Rapid7 presently has a consensus price target of $19.42, indicating a potential upside of 10.32%. As a group, “Software” companies have a potential upside of 9.62%. Given Rapid7’s stronger consensus rating and higher probable upside, equities analysts plainly believe Rapid7 is more favorable than its rivals.

About Rapid7

Rapid7, Inc. is a provider analytics for security and information technology (IT) operations that enable organizations to implement an analytics-driven approach to cyber security and IT operations. The Company’s analytics enable organizations to contextualize and prioritize the threats facing their physical, virtual and cloud assets, including those posed by the behaviors of their users. Leveraging its IT data and analytics platform, its solutions enable organizations to manage their cyber security exposure and manage IT operations. Its solutions empower organizations to prevent attacks by providing visibility into vulnerabilities, and allow them to detect compromises, respond to breaches and correct the underlying causes of attacks. By providing a unified IT and security platform, with automated workflow, it enables IT and security to work together to develop, operate and secure their environment.

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