Splunk (NASDAQ: SPLK) is one of 113 public companies in the “Software” industry, but how does it weigh in compared to its competitors? We will compare Splunk to similar companies based on the strength of its institutional ownership, dividends, risk, profitability, analyst recommendations, valuation and earnings.

Earnings and Valuation

This table compares Splunk and its competitors revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Splunk $949.96 million -$355.18 million -37.46
Splunk Competitors $2.23 billion $415.57 million 327.61

Splunk’s competitors have higher revenue and earnings than Splunk. Splunk 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Splunk -32.72% -71.89% -33.06%
Splunk Competitors -45.62% -22.46% -6.77%

Volatility & Risk

Splunk has a beta of 2.01, suggesting that its stock price is 101% more volatile than the S&P 500. Comparatively, Splunk’s competitors have a beta of 1.07, suggesting that their average stock price is 7% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Splunk and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Splunk 0 9 28 0 2.76
Splunk Competitors 285 2091 4450 89 2.63

Splunk currently has a consensus price target of $81.88, indicating a potential downside of 1.97%. As a group, “Software” companies have a potential upside of 5.76%. Given Splunk’s competitors higher probable upside, analysts plainly believe Splunk has less favorable growth aspects than its competitors.

Institutional & Insider Ownership

59.1% of shares of all “Software” companies are owned by institutional investors. 1.4% of Splunk shares are owned by company insiders. Comparatively, 17.5% of shares of all “Software” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Splunk competitors beat Splunk on 8 of the 12 factors compared.

Splunk Company Profile

Splunk Inc. (Splunk) is engaged in the development and marketing of software solutions. The Company’s offerings enable users to collect, index, search, explore, monitor and analyze data. Its offerings address diverse data sets that are referred to as big data and are specifically used for machine data. Machine data is produced by various software application and electronic devices in an organization and contains a definitive, time-stamped record of various activities, such as transactions, customer and user activities and security threats. Its products help users in various roles, including information technology (IT), security and business professionals, to analyze their machine data and achieve real-time visibility into and intelligence about their organization’s operations. In addition, the Company offers user behavioral analytics to help detect, respond to and mitigate advanced, hidden and insider threats. The Company offers Splunk Enterprise, which is a machine data platform.

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