Head-To-Head Analysis: Rimini Street (RMNI) vs. The Competition

Rimini Street (NASDAQ:RMNI) is one of 273 publicly-traded companies in the “IT Services” industry, but how does it contrast to its competitors? We will compare Rimini Street to related companies based on the strength of its analyst recommendations, risk, earnings, institutional ownership, profitability, valuation and dividends.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Rimini Street and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rimini Street	0	3	3	0	2.50
Rimini Street Competitors	2009	5679	9507	343	2.47

Rimini Street currently has a consensus price target of $6.33, indicating a potential upside of 13.60%. As a group, “IT Services” companies have a potential upside of 23.78%. Given Rimini Street’s competitors higher possible upside, analysts clearly believe Rimini Street has less favorable growth aspects than its competitors.

Institutional & Insider Ownership

73.8% of Rimini Street shares are held by institutional investors. Comparatively, 36.4% of shares of all “IT Services” companies are held by institutional investors. 42.0% of Rimini Street shares are held by insiders. Comparatively, 20.4% of shares of all “IT Services” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rimini Street	2.51%	-92.98%	4.64%
Rimini Street Competitors	-190.54%	-32.69%	-8.39%

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Rimini Street	$421.54 million	$37.10 million	46.46
Rimini Street Competitors	$8.77 billion	$223.00 million	-23.49

Rimini Street’s competitors have higher revenue and earnings than Rimini Street. Rimini Street is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Risk & Volatility

Rimini Street has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500. Comparatively, Rimini Street’s competitors have a beta of 2.16, meaning that their average share price is 116% more volatile than the S&P 500.

Summary

Rimini Street competitors beat Rimini Street on 7 of the 13 factors compared.

Rimini Street Company Profile

Rimini Street, Inc. is a provider of enterprise software support and services. The company offers third-party support for software from vendors including Oracle and SAP, as well as support for other enterprise applications and databases. Its services are designed to help organizations maintain and manage their existing software systems. Rimini Street also provides managed services, application management, security services and advisory support. The company serves clients internationally across a range of industries.