YuMe (NYSE: YUME) is one of 65 public companies in the “Application Software” industry, but how does it contrast to its peers? We will compare YuMe to similar businesses based on the strength of its institutional ownership, risk, profitability, earnings, valuation, dividends and analyst recommendations.

Institutional and Insider Ownership

38.3% of YuMe shares are owned by institutional investors. Comparatively, 68.7% of shares of all “Application Software” companies are owned by institutional investors. 29.3% of YuMe shares are owned by company insiders. Comparatively, 15.7% of shares of all “Application Software” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk and Volatility

YuMe has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500. Comparatively, YuMe’s peers have a beta of 1.61, indicating that their average stock price is 61% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for YuMe and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
YuMe 1 1 0 0 1.50
YuMe Competitors 244 1698 2919 109 2.58

YuMe presently has a consensus price target of $3.00, indicating a potential downside of 35.21%. As a group, “Application Software” companies have a potential upside of 6.75%. Given YuMe’s peers stronger consensus rating and higher possible upside, analysts clearly believe YuMe has less favorable growth aspects than its peers.

Earnings and Valuation

This table compares YuMe and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
YuMe $159.78 million $10.08 million 46.30
YuMe Competitors $761.43 million $137.66 million -11.07

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

Dividends

YuMe pays an annual dividend of $0.12 per share and has a dividend yield of 2.6%. YuMe pays out 120.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Application Software” companies pay a dividend yield of 2.0% and pay out -11,565.3% of their earnings in the form of a dividend.

Profitability

This table compares YuMe and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
YuMe 2.46% 4.36% 2.88%
YuMe Competitors -62.18% -91.89% -16.30%

Summary

YuMe peers beat YuMe on 9 of the 15 factors compared.

YuMe Company Profile

YuMe, Inc. (YuMe) is an independent provider of multi-screen video advertising technology, connecting brand advertisers, digital media property owners and consumers of video content across a range of Internet-connected devices. The Company operating segments include Domestic and International. The Company offers advertising customers end-to-end marketing solutions by combining data-driven technologies with deep insight into audience behavior. The Company also offers demand-side platform (DSP), called YuMe for Advertisers, to find relevant audiences and deliver targeted advertising, and a supply-side platform (SSP), called YuMe for Publishers (YFP 5.0), which helps aggregate audiences, define audience characteristics and offer monetization opportunities for digital media property owners. Its technologies serve the specific needs of brand advertisers and enable them to find and target brand-receptive audiences across a range of Internet connected devices and digital media properties.

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