ServiceSource International (NASDAQ: SREV) is one of 197 public companies in the “IT Services & Consulting” industry, but how does it compare to its peers? We will compare ServiceSource International to related businesses based on the strength of its analyst recommendations, earnings, valuation, risk, dividends, profitability and institutional ownership.

Analyst Ratings

This is a summary of recent ratings and recommmendations for ServiceSource International and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ServiceSource International 0 1 0 0 2.00
ServiceSource International Competitors 1013 5166 7779 221 2.51

ServiceSource International presently has a consensus price target of $5.00, suggesting a potential upside of 47.49%. As a group, “IT Services & Consulting” companies have a potential upside of 3.70%. Given ServiceSource International’s higher possible upside, analysts clearly believe ServiceSource International is more favorable than its peers.

Risk and Volatility

ServiceSource International has a beta of 1.42, meaning that its stock price is 42% more volatile than the S&P 500. Comparatively, ServiceSource International’s peers have a beta of 1.26, meaning that their average stock price is 26% more volatile than the S&P 500.

Insider & Institutional Ownership

74.9% of ServiceSource International shares are owned by institutional investors. Comparatively, 61.7% of shares of all “IT Services & Consulting” companies are owned by institutional investors. 17.9% of ServiceSource International shares are owned by insiders. Comparatively, 16.6% of shares of all “IT Services & Consulting” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares ServiceSource International and its peers top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
ServiceSource International $246.14 million -$6.57 million -6.92
ServiceSource International Competitors $2.12 billion $362.56 million 11.64

ServiceSource International’s peers have higher revenue and earnings than ServiceSource International. ServiceSource International 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.

Profitability

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

Net Margins Return on Equity Return on Assets
ServiceSource International -17.26% -3.70% -1.50%
ServiceSource International Competitors -24.71% -65.42% -4.49%

Summary

ServiceSource International beats its peers on 7 of the 12 factors compared.

About ServiceSource International

ServiceSource International, Inc. (ServiceSource) is a provider of customer and revenue lifecycle solutions that power enterprise revenue relationships, partnering with business to business technology and technology-enabled companies. The Company operates through two segments: Managed Services, and Cloud and Business Intelligence (CBI). The Company delivers through service teams and integral cloud-based technologies from its database of service. By integrating managed services, cloud software and data, the Company provides its clients with insights into their end customers businesses, end-to-end management and service-contract renewals process. As of December 31, 2016, it managed approximately 143 engagements across 66 clients. Its solutions are designed to optimize recurring revenue across various revenue models, distribution models and segments, including hardware, software, Software-as-a-Service (SaaS), industrial systems, technology-enabled healthcare and life sciences.

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