Stem (STEM) and Its Competitors Financial Comparison

Stem (NYSE:STEM) is one of 955 public companies in the “Software” industry, but how does it weigh in compared to its competitors? We will compare Stem to related businesses based on the strength of its valuation, institutional ownership, earnings, dividends, analyst recommendations, profitability and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Stem	-49.37%	N/A	-21.85%
Stem Competitors	-619.02%	18.31%	-8.93%

Valuation and Earnings

This table compares Stem and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Stem	$156.27 million	$137.76 million	-0.28
Stem Competitors	$1.80 billion	$385.05 million	112.31

Stem’s competitors have higher revenue and earnings than Stem. Stem 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.

Risk and Volatility

Stem has a beta of 1.58, meaning that its share price is 58% more volatile than the S&P 500. Comparatively, Stem’s competitors have a beta of 1.26, meaning that their average share price is 26% more volatile than the S&P 500.

Insider & Institutional Ownership

61.6% of Stem shares are owned by institutional investors. Comparatively, 41.9% of shares of all “Software” companies are owned by institutional investors. 5.1% of Stem shares are owned by company insiders. Comparatively, 19.8% of shares of all “Software” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations for Stem and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stem	1	4	1	0	2.00
Stem Competitors	5710	21462	44701	1489	2.57

Stem presently has a consensus target price of $6.54, indicating a potential upside of 173.02%. As a group, “Software” companies have a potential upside of 26.68%. Given Stem’s higher possible upside, analysts clearly believe Stem is more favorable than its competitors.

Summary

Stem competitors beat Stem on 9 of the 13 factors compared.

About Stem

Stem, Inc. operates as a digitally connected, intelligent, and renewable energy storage network provider worldwide. The company offers energy storage hardware sourced from original equipment manufacturers (OEMs); edge hardware to aid in the collection of site data and real-time operation and control of the site and other optional equipment; and Athena, a software platform, which offers battery hardware and software-enabled services to operate the energy storage systems. It serves commercial and industrial enterprises, independent power producers, renewable project developers, and utilities and grid operators. The company was incorporated in 2009 and is headquartered in San Francisco, California.