Splunk (SPLK) and The Competition Critical Analysis
Splunk (NASDAQ: SPLK) is one of 113 public companies in the “Software” industry, but how does it compare to its competitors? We will compare Splunk to related companies based on the strength of its institutional ownership, profitability, dividends, valuation, analyst recommendations, earnings and risk.
Risk and Volatility
Splunk has a beta of 2.01, meaning that its stock price is 101% more volatile than the S&P 500. Comparatively, Splunk’s competitors have a beta of 0.89, meaning that their average stock price is 11% less volatile than the S&P 500.
This table compares Splunk and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
56.7% of shares of all “Software” companies are owned by institutional investors. 1.4% of Splunk shares are owned by insiders. Comparatively, 19.1% of shares of all “Software” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This is a summary of recent ratings and price targets for Splunk and its competitors, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Splunk currently has a consensus target price of $81.88, indicating a potential downside of 2.64%. As a group, “Software” companies have a potential upside of 9.89%. Given Splunk’s competitors higher possible upside, analysts plainly believe Splunk has less favorable growth aspects than its competitors.
Valuation & Earnings
This table compares Splunk and its competitors revenue, earnings per share (EPS) and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Splunk||$949.96 million||-$355.18 million||-19.38|
|Splunk Competitors||$2.23 billion||$415.57 million||345.90|
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.
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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