Pareteum (NASDAQ: TEUM) is one of 41 public companies in the “Computer integrated systems design” industry, but how does it contrast to its peers? We will compare Pareteum to related companies based on the strength of its valuation, profitability, earnings, institutional ownership, risk, analyst recommendations and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
Pareteum -67.83% -60.67% -43.28%
Pareteum Competitors -5.73% 1.01% 0.47%

Insider & Institutional Ownership

9.2% of Pareteum shares are owned by institutional investors. Comparatively, 63.5% of shares of all “Computer integrated systems design” companies are owned by institutional investors. 3.4% of Pareteum shares are owned by insiders. Comparatively, 14.9% of shares of all “Computer integrated systems design” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk & Volatility

Pareteum has a beta of 0.31, meaning that its share price is 69% less volatile than the S&P 500. Comparatively, Pareteum’s peers have a beta of -36.00, meaning that their average share price is 3,700% less volatile than the S&P 500.

Earnings and Valuation

This table compares Pareteum and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Pareteum $13.55 million -$12.46 million -2.24
Pareteum Competitors $1.52 billion $56.18 million 20.37

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

Analyst Recommendations

This is a summary of current ratings and price targets for Pareteum and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pareteum 0 1 1 0 2.50
Pareteum Competitors 322 1537 2176 70 2.49

As a group, “Computer integrated systems design” companies have a potential upside of 26.70%. Given Pareteum’s peers higher possible upside, analysts plainly believe Pareteum has less favorable growth aspects than its peers.

Summary

Pareteum peers beat Pareteum on 11 of the 13 factors compared.

About Pareteum

Pareteum Corporation operates a communications cloud services platform in Europe and internationally. Its platform provides mobility, messaging, and security services and applications, with a single-sign-on, application program interface (API), and software development suite. The company's platform hosts integrated IT/back office and core network functionality for mobile network operators, as well as for enterprises to implement and leverage mobile communications solutions on a SaaS, PaaS, or IaaS basis. It also offers operational support system for channel partners with APIs for integration with third party systems, workflows for complex application orchestration, and customer support with branded portals and plug-ins for various other applications. Pareteum Corporation serves the markets of Internet of Things, mobile virtual network operators, smart cities, and application developers. The company was formerly known as Elephant Talk Communications Corp. and changed its name to Pareteum Corporation in November 2016. Pareteum Corporation is based in New York, New York.

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