New Relic (NYSE: NEWR) is one of 68 publicly-traded companies in the “Application Software” industry, but how does it weigh in compared to its competitors? We will compare New Relic to similar businesses based on the strength of its profitability, dividends, institutional ownership, analyst recommendations, earnings, risk and valuation.

Volatility and Risk

New Relic has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500. Comparatively, New Relic’s competitors have a beta of 1.14, indicating that their average stock price is 14% more volatile than the S&P 500.

Valuation & Earnings

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

Gross Revenue NetIncome Price/Earnings Ratio
New Relic $263.48 million -$61.07 million -47.40
New Relic Competitors $954.67 million $64.66 million 461.79

New Relic’s competitors have higher revenue and earnings than New Relic. New Relic 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.

Profitability

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

Net Margins Return on Equity Return on Assets
New Relic -19.43% -29.19% -16.09%
New Relic Competitors -67.65% -110.30% -18.08%

Analyst Recommendations

This is a summary of recent recommendations and price targets for New Relic and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
New Relic 0 2 11 0 2.85
New Relic Competitors 190 1573 2970 98 2.62

New Relic currently has a consensus price target of $52.75, indicating a potential downside of 0.64%. As a group, “Application Software” companies have a potential upside of 9.98%. Given New Relic’s competitors higher possible upside, analysts clearly believe New Relic has less favorable growth aspects than its competitors.

Institutional & Insider Ownership

73.5% of New Relic shares are owned by institutional investors. Comparatively, 68.5% of shares of all “Application Software” companies are owned by institutional investors. 23.1% of New Relic shares are owned by company insiders. Comparatively, 15.6% of shares of all “Application Software” companies are owned 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.

Summary

New Relic beats its competitors on 7 of the 12 factors compared.

New Relic Company Profile

New Relic, Inc. (New Relic) is a provider of enterprise software. The Company’s cloud-based platform and range of products enable organizations to collect, store and analyze software data in real time. The Company’s New Relic Software Analytics Cloud consists of an integrated suite of products, a data database and an open platform. New Relic offers an integrated suite of products, namely, New Relic APM, for application performance management; New Relic Mobile, for mobile application performance management; New Relic Servers, for server monitoring for cloud and data centers; New Relic Browser, for end user experience monitoring and performance monitoring; New Relic Synthetics, for software testing through simulated usage; New Relic Plugins, plugins to extend its functionality into other applications; New Relic Alerts, for policy management and delivering alerts across entire suite of products, and New Relic Insights, for real-time big data analytics for business managers.

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