Exa Corporation (NASDAQ: EXA) is one of 118 publicly-traded companies in the “Software” industry, but how does it contrast to its peers? We will compare Exa Corporation to related businesses based on the strength of its risk, valuation, institutional ownership, analyst recommendations, dividends, profitability and earnings.

Earnings & Valuation

This table compares Exa Corporation and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Exa Corporation $72.69 million $1.48 million -75.64
Exa Corporation Competitors $1.51 billion $446.17 million 42.44

Exa Corporation’s peers have higher revenue and earnings than Exa Corporation. Exa Corporation 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 Exa Corporation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Exa Corporation -6.46% -25.19% -7.40%
Exa Corporation Competitors -41.93% -25.06% -9.82%

Institutional and Insider Ownership

76.0% of Exa Corporation shares are held by institutional investors. Comparatively, 58.4% of shares of all “Software” companies are held by institutional investors. 11.5% of Exa Corporation shares are held by company insiders. Comparatively, 20.0% of shares of all “Software” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk & Volatility

Exa Corporation has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500. Comparatively, Exa Corporation’s peers have a beta of 0.98, meaning that their average share price is 2% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Exa Corporation and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Exa Corporation 0 4 0 0 2.00
Exa Corporation Competitors 259 1986 4245 84 2.63

Exa Corporation currently has a consensus target price of $20.63, suggesting a potential downside of 14.79%. As a group, “Software” companies have a potential upside of 7.27%. Given Exa Corporation’s peers stronger consensus rating and higher possible upside, analysts plainly believe Exa Corporation has less favorable growth aspects than its peers.

Summary

Exa Corporation peers beat Exa Corporation on 9 of the 12 factors compared.

About Exa Corporation

Exa Corporation develops, sells and supports simulation software and services that manufacturers use in design and engineering processes. The Company focuses primarily on the ground transportation market, including manufacturers in the passenger vehicle, highway truck, off-highway vehicle and train markets, as well as their suppliers. Its product, PowerFLOW, is a software solution for simulating fluid flow problems, including aerodynamics, thermal management and aeroacoustics, or wind noise. PowerFLOW uses its Digital Physics technology that enables it to predict fluid flows. PowerFLOW directly simulates unpredictable turbulent scales. The PowerFLOW software suite includes the simulation engine and grid generation engine, along with pre- and post-processing software products. The software is delivered in client/server architecture, or through its cloud-based offering, ExaCLOUD. With the ExaCLOUD solution, various client features and functions are accessed through a Web browser.

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