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

Insider & Institutional Ownership

59.1% of shares of all “Software” companies are held by institutional investors. 1.4% of Splunk shares are held by insiders. Comparatively, 17.5% of shares of all “Software” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Splunk and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Splunk $949.96 million -$355.18 million -19.30
Splunk Competitors $2.23 billion $415.57 million 331.72

Splunk’s rivals have higher revenue and earnings than Splunk. Splunk is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

Splunk has a beta of 2.01, meaning that its share price is 101% more volatile than the S&P 500. Comparatively, Splunk’s rivals have a beta of 0.91, meaning that their average share price is 9% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Splunk and its rivals, 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 4450 88 2.63

Splunk presently has a consensus target price of $81.88, indicating a potential downside of 2.27%. As a group, “Software” companies have a potential upside of 4.58%. Given Splunk’s rivals higher possible upside, analysts plainly believe Splunk has less favorable growth aspects than its rivals.

Profitability

This table compares Splunk and its rivals’ 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%

Summary

Splunk rivals 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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