Evolving Systems (NASDAQ: EVOL) is one of 121 public companies in the “Software” industry, but how does it compare to its peers? We will compare Evolving Systems to related businesses based on the strength of its institutional ownership, earnings, profitability, risk, valuation, analyst recommendations and dividends.

Insider & Institutional Ownership

31.5% of Evolving Systems shares are owned by institutional investors. Comparatively, 57.8% of shares of all “Software” companies are owned by institutional investors. 10.2% of Evolving Systems shares are owned by insiders. Comparatively, 19.3% of shares of all “Software” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Evolving Systems and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Evolving Systems $24.32 million $7.79 million 12.92
Evolving Systems Competitors $1.52 billion $446.84 million 12.26

Evolving Systems’ peers have higher revenue and earnings than Evolving Systems. Evolving Systems 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.

Analyst Recommendations

This is a summary of current recommendations for Evolving Systems and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Evolving Systems 0 0 0 0 N/A
Evolving Systems Competitors 277 2080 4392 86 2.63

As a group, “Software” companies have a potential upside of 1.64%. Given Evolving Systems’ peers higher probable upside, analysts clearly believe Evolving Systems has less favorable growth aspects than its peers.

Volatility and Risk

Evolving Systems has a beta of 0.39, indicating that its stock price is 61% less volatile than the S&P 500. Comparatively, Evolving Systems’ peers have a beta of 1.00, indicating that their average stock price is 0% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Evolving Systems 17.69% 15.73% 10.69%
Evolving Systems Competitors -44.27% -25.70% -9.51%

Summary

Evolving Systems peers beat Evolving Systems on 7 of the 10 factors compared.

Evolving Systems Company Profile

Evolving Systems, Inc. is a provider of software solutions for service enablement, on-device activation and management of services for connected devices for network operators. The Company operates in two segments: license fees and services revenue, and customer support revenue. Its service activation solution, Tertio is used to activate voice, video and data services for wireless, wireline and cable network operators. Its Subscriber Identity Module (SIM) card activation solution, Dynamic SIM Allocation is used to allocate and assign resources to Mobile Network Operators devices that rely on SIM cards. Its Mobile Data Enablement solution provides a data consumption and policy management solution for wireless carriers and Mobile Virtual Network Operators that monitor the usage and consumption of data services. Its Total Number Management product is an automated database solution that enables operators to manage their telephone numbers, as well as other communication identifiers.

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