Square (NYSE: SQ) is one of 68 publicly-traded companies in the “Application Software” industry, but how does it compare to its rivals? We will compare Square to related companies based on the strength of its earnings, risk, valuation, institutional ownership, analyst recommendations, profitability and dividends.

Valuation and Earnings

This table compares Square and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Square $1.71 billion -$171.59 million -227.63
Square Competitors $961.42 million $62.77 million 434.22

Square has higher revenue, but lower earnings than its rivals. Square is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Square and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Square -3.04% -7.98% -3.18%
Square Competitors -67.74% -110.43% -18.16%

Analyst Ratings

This is a summary of current ratings and price targets for Square and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Square 0 13 19 0 2.59
Square Competitors 193 1584 3041 99 2.62

Square presently has a consensus target price of $31.75, indicating a potential downside of 17.95%. As a group, “Application Software” companies have a potential upside of 12.07%. Given Square’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Square has less favorable growth aspects than its rivals.

Institutional & Insider Ownership

53.2% of Square shares are owned by institutional investors. Comparatively, 69.5% of shares of all “Application Software” companies are owned by institutional investors. 32.7% of Square shares are owned by insiders. Comparatively, 15.1% of shares of all “Application Software” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Square rivals beat Square on 6 of the 11 factors compared.

Square Company Profile

Square, Inc. (Square) is a commerce ecosystem. The Company enables its sellers start, run and grow their businesses. It combines software with hardware to enable sellers to turn mobile devices and computing devices into payments and point-of-sale solutions. Once a seller downloads the Square Point of Sale mobile application, they can take their first payment. With its offering, a seller can accept payments in person via magnetic stripe (a swipe), Europay, MasterCard, and Visa (EMV) (a dip), or Near Field Communication (NFC) (a tap); or online via Square Invoices, Square Virtual Terminal, or the seller’s Website. Once on its system, sellers gain access to technology and features, such as reporting and analytics, next-day settlements, digital receipts, payment dispute management and chargeback protection, and Payment Card Industry (PCI) compliance. On the consumer (buyer) side, Square Cash offers individuals access to a way to send and receive money.

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