Vmware (NYSE: VMW) is one of 196 public companies in the “IT Services & Consulting” industry, but how does it weigh in compared to its competitors? We will compare Vmware to similar businesses based on the strength of its analyst recommendations, profitability, institutional ownership, valuation, earnings, dividends and risk.

Institutional & Insider Ownership

21.8% of Vmware shares are held by institutional investors. Comparatively, 60.9% of shares of all “IT Services & Consulting” companies are held by institutional investors. 0.5% of Vmware shares are held by insiders. Comparatively, 16.8% of shares of all “IT Services & Consulting” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Vmware has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500. Comparatively, Vmware’s competitors have a beta of 1.27, suggesting that their average stock price is 27% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Vmware and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vmware 0 13 18 0 2.58
Vmware Competitors 682 4447 7453 168 2.56

Vmware presently has a consensus price target of $113.00, suggesting a potential downside of 3.09%. As a group, “IT Services & Consulting” companies have a potential downside of 0.91%. Given Vmware’s competitors higher probable upside, analysts clearly believe Vmware has less favorable growth aspects than its competitors.

Profitability

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

Net Margins Return on Equity Return on Assets
Vmware 17.81% 18.06% 9.01%
Vmware Competitors -20.64% -51.81% -4.16%

Valuation & Earnings

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

Gross Revenue EBITDA Price/Earnings Ratio
Vmware $7.09 billion $1.85 billion 36.90
Vmware Competitors $2.14 billion $366.28 million 16.91

Vmware has higher revenue and earnings than its competitors. Vmware 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

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

About Vmware

VMware, Inc. is an information technology (IT) company. The Company is engaged in development and application of virtualization technologies with x86 server-based computing, separating application software from the underlying hardware. The Company offers various products, which allow organizations to manage IT resources across private clouds and multi-cloud, multi-device environments by leveraging synergies across three product categories: Software-Defined Data Center (SDDC), Hybrid Cloud Computing and End-User Computing (EUC). The SDDC is designed to transform and modernize the data center into an on-demand service that addresses application requirements by abstracting, pooling and automating the services that are required from the underlying hardware. The Company provides many storage and availability products to offer data storage and protection options to all applications running on the vSphere platform.

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