Twitter (NYSE: TWTR) is one of 44 publicly-traded companies in the “Computer programming, data processing, & other computer related” industry, but how does it compare to its peers? We will compare Twitter to similar businesses based on the strength of its profitability, risk, dividends, institutional ownership, earnings, valuation and analyst recommendations.

Analyst Ratings

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This is a breakdown of recent recommendations for Twitter and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Twitter 7 19 8 0 2.03
Twitter Competitors 506 1906 4622 229 2.63

Twitter currently has a consensus price target of $23.39, suggesting a potential downside of 18.17%. As a group, “Computer programming, data processing, & other computer related” companies have a potential upside of 8.42%. Given Twitter’s peers stronger consensus rating and higher possible upside, analysts plainly believe Twitter has less favorable growth aspects than its peers.

Risk & Volatility

Twitter has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500. Comparatively, Twitter’s peers have a beta of 1.41, meaning that their average stock price is 41% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Twitter -4.42% 0.77% 0.53%
Twitter Competitors -16.11% -45.92% -1.15%

Insider and Institutional Ownership

54.7% of Twitter shares are held by institutional investors. Comparatively, 49.3% of shares of all “Computer programming, data processing, & other computer related” companies are held by institutional investors. 9.2% of Twitter shares are held by insiders. Comparatively, 13.9% of shares of all “Computer programming, data processing, & other computer related” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Twitter $2.44 billion -$108.06 million 476.33
Twitter Competitors $6.96 billion $964.57 million 38.50

Twitter’s peers have higher revenue and earnings than Twitter. Twitter 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.

Summary

Twitter peers beat Twitter on 8 of the 13 factors compared.

About Twitter

Twitter, Inc. operates as a platform for public self-expression and conversation in real time. The company offers various products and services, including Twitter that allows users to consume, create, distribute, and discover content; and Periscope, a mobile application that enables user to broadcast and watch video live with others. It also provides promoted products and services, such as promoted tweets, promoted accounts, and promoted trends, which enable its advertisers to promote their brands, products, and services. In addition, the company offers a set of tools, public APIs, and embeddable widgets for developers to contribute their content to its platform, syndicate and distribute Twitter content across their properties, and enhance their Websites and applications with Twitter content. Further, it provides subscription access to its public data feed for data partners. The company has operations in the United States and internationally. Twitter, Inc. was founded in 2006 and is headquartered in San Francisco, California.

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