ANSYS (NASDAQ: ANSS) is one of 63 public companies in the “Application Software” industry, but how does it compare to its competitors? We will compare ANSYS to similar businesses based on the strength of its institutional ownership, risk, earnings, profitability, analyst recommendations, dividends and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for ANSYS and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ANSYS 2 10 1 0 1.92
ANSYS Competitors 227 1658 2835 109 2.59

ANSYS currently has a consensus price target of $115.22, indicating a potential downside of 5.42%. As a group, “Application Software” companies have a potential upside of 2.39%. Given ANSYS’s competitors stronger consensus rating and higher possible upside, analysts plainly believe ANSYS has less favorable growth aspects than its competitors.

Profitability

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

Net Margins Return on Equity Return on Assets
ANSYS 26.37% 13.87% 11.06%
ANSYS Competitors -61.24% -92.99% -15.97%

Institutional and Insider Ownership

96.9% of ANSYS shares are held by institutional investors. Comparatively, 70.8% of shares of all “Application Software” companies are held by institutional investors. 1.3% of ANSYS shares are held by company insiders. Comparatively, 16.0% of shares of all “Application Software” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk and Volatility

ANSYS has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500. Comparatively, ANSYS’s competitors have a beta of 1.68, indicating that their average share price is 68% more volatile than the S&P 500.

Valuation and Earnings

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

Gross Revenue EBITDA Price/Earnings Ratio
ANSYS $1.03 billion $461.25 million 39.17
ANSYS Competitors $769.36 million $137.09 million -10.12

ANSYS has higher revenue and earnings than its competitors. ANSYS is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

ANSYS beats its competitors on 7 of the 13 factors compared.

ANSYS Company Profile

ANSYS, Inc. (ANSYS) develops and markets engineering simulation software and services used by engineers, designers, researchers and students across a range of industries and academia, including aerospace and defense, automotive, industrial equipment, electronics, biomedical, energy, materials and chemical processing, and semiconductors. The Company focuses on the development of open and flexible solutions that enable users to analyze designs directly on the desktop, providing a common platform for product development, from design concept to final-stage testing and validation. The Company distributes its ANSYS suite of simulation technologies through a network of independent resellers and distributors, and direct sales offices in various locations. Its product portfolio consists of Simulation Platform: ANSYS Workbench, Structures, Fluids, Electronics, Semiconductors, Multiphysics, AIM, Embedded Software, Systems, Three Dimensional (3-D) Direct Modeling and Academic.

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