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.

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% -22.45% -6.78%

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.

Analyst Recommendations

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 0 9 28 0 2.76
Splunk Competitors 285 2091 4451 89 2.63

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.

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.

Receive News & Ratings for Splunk Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Splunk Inc. and related companies with Analyst Ratings Network's FREE daily email newsletter.