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

Volatility and Risk

Hortonworks has a beta of 1.61, meaning that its stock price is 61% more volatile than the S&P 500. Comparatively, Hortonworks’ competitors have a beta of 1.13, meaning that their average stock price is 13% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Hortonworks -107.07% -765.37% -100.38%
Hortonworks Competitors -24.88% -210.54% -7.72%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Hortonworks and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hortonworks 0 3 13 0 2.81
Hortonworks Competitors 345 2057 3907 107 2.59

Hortonworks currently has a consensus target price of $19.23, suggesting a potential upside of 18.27%. As a group, “Enterprise Software” companies have a potential upside of 2.25%. Given Hortonworks’ stronger consensus rating and higher possible upside, research analysts clearly believe Hortonworks is more favorable than its competitors.

Earnings and Valuation

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

Gross Revenue EBITDA Price/Earnings Ratio
Hortonworks $217.29 million -$223.00 million -4.28
Hortonworks Competitors $1.27 billion $348.15 million 36.16

Hortonworks’ competitors have higher revenue and earnings than Hortonworks. Hortonworks 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

50.1% of Hortonworks shares are owned by institutional investors. Comparatively, 60.0% of shares of all “Enterprise Software” companies are owned by institutional investors. 22.5% of Hortonworks shares are owned by company insiders. Comparatively, 23.0% of shares of all “Enterprise Software” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

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

Hortonworks Company Profile

Hortonworks, Inc. is a provider and distributor of enterprise-scale data management software platforms. The Company’s product offerings include Hortonworks Data Platform (HDP), Hortonworks Sandbox and Hortonworks DataFlow Platform (HDF). It provides support subscription offerings and related professional services for its enterprise-scale Connected Data Platforms, such as HDP and HDF. Its Data at Rest solution, the HDP, is an enterprise-scale data management platform built entirely on open source software, including Apache Hadoop. HDP combines computer servers with local storage and open source software technology to create a distributed compute and storage platform for data sets that is secure and scalable over petabytes of data within thousands of servers or nodes. Its Data in Motion solution, the HDF, is an enterprise-scale data ingest platform built entirely on open source software, including Apache NiFi.

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