The Ultimate Software Group (NASDAQ: ULTI) is one of 117 publicly-traded companies in the “Software” industry, but how does it weigh in compared to its competitors? We will compare The Ultimate Software Group to related businesses based on the strength of its valuation, dividends, earnings, institutional ownership, risk, profitability and analyst recommendations.

Institutional & Insider Ownership

58.4% of shares of all “Software” companies are owned by institutional investors. 4.9% of The Ultimate Software Group shares are owned by company insiders. Comparatively, 20.0% of shares of all “Software” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares The Ultimate Software Group and its competitors revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
The Ultimate Software Group $860.72 million $62.29 million 186.95
The Ultimate Software Group Competitors $1.53 billion $451.94 million 41.65

The Ultimate Software Group’s competitors have higher revenue and earnings than The Ultimate Software Group. The Ultimate Software Group 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

The Ultimate Software Group has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500. Comparatively, The Ultimate Software Group’s competitors have a beta of 0.98, suggesting that their average share price is 2% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for The Ultimate Software Group and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Ultimate Software Group 0 3 16 0 2.84
The Ultimate Software Group Competitors 389 2309 4393 115 2.59

The Ultimate Software Group currently has a consensus target price of $235.29, indicating a potential upside of 28.43%. As a group, “Software” companies have a potential upside of 8.89%. Given The Ultimate Software Group’s stronger consensus rating and higher possible upside, analysts plainly believe The Ultimate Software Group is more favorable than its competitors.

Profitability

This table compares The Ultimate Software Group and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Ultimate Software Group 3.47% 7.20% 2.55%
The Ultimate Software Group Competitors -42.22% -44.29% -9.99%

Summary

The Ultimate Software Group beats its competitors on 8 of the 13 factors compared.

About The Ultimate Software Group

The Ultimate Software Group, Inc. (Ultimate) is a cloud provider of people management solutions, referred to as human capital management (HCM). The Company’s UltiPro product suite (UltiPro) is an engaging solution that has human resources (HR), payroll and benefits management. As of December 31, 2016, UltiPro included global people management, available in 14 languages with more than 35 country-specific localizations. The solution is delivered through software-as-a-service (SaaS) to organizations based in the United States and Canada, including those with global workforces. The UltiPro solution includes feature sets for talent acquisition and onboarding, HR management and compliance, benefits management and online enrollment, payroll, performance management, compensation management with salary planning, budgeting, and development of incentive plans, succession management, reporting and analytical decision-making and predictive tools, and time and attendance.

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