Solera Holdings (NYSE: SLH) is one of 111 publicly-traded companies in the “Software” industry, but how does it weigh in compared to its competitors? We will compare Solera Holdings to similar businesses based on the strength of its risk, valuation, dividends, profitability, analyst recommendations, institutional ownership and earnings.

Insider and Institutional Ownership

56.7% of shares of all “Software” companies are owned by institutional investors. 19.1% of shares of all “Software” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Solera Holdings 18.15% N/A 6.01%
Solera Holdings Competitors -46.66% -22.97% -6.95%

Volatility & Risk

Solera Holdings has a beta of 0.26, suggesting that its share price is 74% less volatile than the S&P 500. Comparatively, Solera Holdings’ competitors have a beta of 0.90, suggesting that their average share price is 10% less volatile than the S&P 500.

Valuation & Earnings

This table compares Solera Holdings and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Solera Holdings N/A N/A -28.20
Solera Holdings Competitors $2.23 billion $415.57 million 262.45

Solera Holdings’ competitors have higher revenue and earnings than Solera Holdings. Solera Holdings 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.

Dividends

Solera Holdings pays an annual dividend of $0.90 per share and has a dividend yield of 1.6%. Solera Holdings pays out -45.5% of its earnings in the form of a dividend. As a group, “Software” companies pay a dividend yield of 1.1% and pay out 87.2% of their earnings in the form of a dividend. Solera Holdings has raised its dividend for 7 consecutive years. Solera Holdings is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of recent recommendations for Solera Holdings and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Solera Holdings 0 0 0 0 N/A
Solera Holdings Competitors 285 2085 4405 89 2.63

As a group, “Software” companies have a potential upside of 8.10%. Given Solera Holdings’ competitors higher probable upside, analysts plainly believe Solera Holdings has less favorable growth aspects than its competitors.

Solera Holdings Company Profile

Solera Holdings, Inc. is a United States-based company, which is a provider of risk and asset management software and services to the automotive and property marketplace, including the global property and casualty (P&C) insurance industry. The Company is engaged in cognitive technologies for the automotive and home ownership ecosystems. The Company’s solutions and services bring together consumers, insurers, banks, governments, manufacturers, owners, wholesalers, retailers, and service and repair industries, into digitally unified ecosystems that enable the management, protection and security of assets throughout their lifecycles. The Company’s product platforms include Audatex, AutoPoint, CAP/HPI, Digidentity, Explore Data, Hollander, Identifix, Inpart and TitleTec, as well as the company’s application, Digital Garage. The Company processes over 240 million transactions annually for approximately 200,000 partners in approximately 80 countries.

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