SolarWinds (NYSE: SWI) is one of 107 publicly-traded companies in the “Enterprise Software” industry, but how does it contrast to its competitors? We will compare SolarWinds to similar companies based on the strength of its earnings, profitability, institutional ownership, analyst recommendations, dividends, valuation and risk.

Volatility and Risk

SolarWinds has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500. Comparatively, SolarWinds’ competitors have a beta of 1.12, suggesting that their average share price is 12% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for SolarWinds and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SolarWinds 0 0 0 0 N/A
SolarWinds Competitors 361 2168 4084 116 2.59

As a group, “Enterprise Software” companies have a potential downside of 0.19%. Given SolarWinds’ competitors higher possible upside, analysts clearly believe SolarWinds has less favorable growth aspects than its competitors.

Earnings & Valuation

This table compares SolarWinds and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
SolarWinds N/A N/A 50.83
SolarWinds Competitors $1.82 billion $300.08 million 233.21

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

Institutional and Insider Ownership

59.2% of shares of all “Enterprise Software” companies are held by institutional investors. 23.5% of shares of all “Enterprise Software” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares SolarWinds and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SolarWinds 20.52% 19.24% 12.70%
SolarWinds Competitors -25.32% -198.83% -7.60%

SolarWinds Company Profile

SolarWinds, Inc. (SolarWinds) is a holding company. The Company designs, develops, markets, sells and supports enterprise-class information technology (IT), infrastructure management software to IT and DevOps professionals in organizations of all sizes. Its products categories include network management, which is used to monitor and manage the performance of network infrastructure; systems management, which is used to monitor and manage the performance of applications, physical and virtual servers, storage and databases; MSP, which is used by managed service providers to monitor and manage the IT infrastructure of their end clients, SMBs, and cloud, its cloud-based products, which are used to monitor and manage applications and application infrastructure. Its customers include small- and mid-size businesses, enterprises, MSPs, and local, state and federal Government entities.

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