Qualys (NASDAQ: QLYS) is one of 24 public companies in the “Cloud Computing Services” industry, but how does it weigh in compared to its competitors? We will compare Qualys to similar companies based on the strength of its valuation, earnings, analyst recommendations, profitability, risk, institutional ownership and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
Qualys 18.92% 14.69% 9.39%
Qualys Competitors -57.49% -45.40% -16.58%

Volatility and Risk

Qualys has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, Qualys’ competitors have a beta of 0.95, indicating that their average share price is 5% less volatile than the S&P 500.

Insider & Institutional Ownership

73.6% of Qualys shares are owned by institutional investors. Comparatively, 58.5% of shares of all “Cloud Computing Services” companies are owned by institutional investors. 30.2% of Qualys shares are owned by company insiders. Comparatively, 20.2% of shares of all “Cloud Computing Services” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Qualys and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Qualys $211.63 million $52.41 million 50.78
Qualys Competitors $933.33 million $18.40 million -78.96

Qualys’ competitors have higher revenue, but lower earnings than Qualys. Qualys 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.

Analyst Recommendations

This is a summary of recent ratings for Qualys and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Qualys 0 8 6 0 2.43
Qualys Competitors 101 527 1525 47 2.69

Qualys currently has a consensus target price of $45.30, suggesting a potential downside of 12.55%. As a group, “Cloud Computing Services” companies have a potential upside of 8.88%. Given Qualys’ competitors stronger consensus rating and higher probable upside, analysts clearly believe Qualys has less favorable growth aspects than its competitors.

Summary

Qualys beats its competitors on 7 of the 13 factors compared.

About Qualys

Qualys, Inc. is a provider of cloud-based security and compliance solutions. The Company’s solutions enable organizations to identify security risks to their information technology (IT) infrastructures, help protect their IT systems and applications from cyber-attacks. Its suite of security and compliance solutions delivered on its Qualys Cloud Platform enables its customers to identify their IT assets, collect and analyze IT security data, discover and prioritize vulnerabilities, recommend remediation actions and verify the implementation of such actions. Its Qualys Cloud Platform consists of a suite of IT security and compliance solutions. The Qualys Cloud Suite includes solutions, such as Vulnerability Management, Continuous Monitoring, Cloud Agent, AssetView, ThreatPROTECT, Policy Compliance, Payment Card Industry Compliance, Security Assessment Questionnaire, Web Application Scanning and Web Application Firewall. It provides its solutions through a software-as-a-service model.

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