Apptio (NASDAQ: APTI) is one of 107 publicly-traded companies in the “Enterprise Software” industry, but how does it contrast to its competitors? We will compare Apptio to similar companies based on the strength of its earnings, profitability, institutional ownership, analyst recommendations, dividends, valuation and risk.

Volatility and Risk

Apptio has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500. Comparatively, Apptio’s competitors have a beta of 1.10, suggesting that their average share price is 10% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Apptio -14.77% -36.83% -13.78%
Apptio Competitors -25.37% -205.72% -7.90%

Institutional and Insider Ownership

45.3% of Apptio shares are held by institutional investors. Comparatively, 59.1% of shares of all “Enterprise Software” companies are held by institutional investors. 43.2% of Apptio shares are held by insiders. Comparatively, 23.5% of shares of all “Enterprise Software” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

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

Gross Revenue NetIncome Price/Earnings Ratio
Apptio $160.57 million -$31.55 million -32.09
Apptio Competitors $1.82 billion $300.70 million 40.52

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

Analyst Recommendations

This is a breakdown of recent ratings for Apptio and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Apptio 0 1 6 0 2.86
Apptio Competitors 370 2205 4127 118 2.59

Apptio currently has a consensus price target of $24.29, indicating a potential upside of 9.69%. As a group, “Enterprise Software” companies have a potential downside of 0.12%. Given Apptio’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Apptio is more favorable than its competitors.

Summary

Apptio beats its competitors on 7 of the 12 factors compared.

Apptio Company Profile

Apptio, Inc. is a provider of technology business management (TBM) solutions. The Company’s cloud-based platform and software as a service (SaaS) applications enable information technology (IT) leaders to analyze, optimize and plan technology investments, and benchmark the financial and operational performance against peers. It operates in the United States, the United Kingdom, Germany, Denmark, the Netherlands, Australia, Canada, France and Singapore. Its TBM solutions consist of a cloud-based platform and SaaS applications, which include Cost Transparency, IT Benchmarking, Business Insights, Bill of IT and IT Planning. It serves a range of industries, including financial services, professional services, technology, energy, consumer goods, manufacturing, healthcare, media, retail and transportation, as well as federal and state government agencies. Its cloud-based data and analytics platform aggregates, cleanses and correlates customer data from a range of disparate sources.

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