Rapid7 (NASDAQ: RPD) is one of 118 public companies in the “Software” industry, but how does it weigh in compared to its competitors? We will compare Rapid7 to similar businesses based on the strength of its earnings, risk, analyst recommendations, dividends, institutional ownership, profitability and valuation.

Insider & Institutional Ownership

71.0% of Rapid7 shares are held by institutional investors. Comparatively, 61.0% of shares of all “Software” companies are held by institutional investors. 56.9% of Rapid7 shares are held by company insiders. Comparatively, 17.8% of shares of all “Software” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Rapid7 and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rapid7 0 1 6 0 2.86
Rapid7 Competitors 259 1987 4250 84 2.63

Rapid7 presently has a consensus target price of $20.21, suggesting a potential upside of 9.44%. As a group, “Software” companies have a potential upside of 6.30%. Given Rapid7’s stronger consensus rating and higher possible upside, analysts clearly believe Rapid7 is more favorable than its competitors.

Earnings & Valuation

This table compares Rapid7 and its competitors gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Rapid7 $178.06 million -$36.89 million -18.47
Rapid7 Competitors $1.52 billion $446.91 million 41.82

Rapid7’s competitors have higher revenue and earnings than Rapid7. Rapid7 is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Rapid7 has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500. Comparatively, Rapid7’s competitors have a beta of 0.98, suggesting that their average stock price is 2% less volatile than the S&P 500.

Profitability

This table compares Rapid7 and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rapid7 -23.67% -98.26% -16.93%
Rapid7 Competitors -42.72% -24.97% -9.84%

Rapid7 Company Profile

Rapid7, Inc. is a provider analytics for security and information technology (IT) operations that enable organizations to implement an analytics-driven approach to cyber security and IT operations. The Company’s analytics enable organizations to contextualize and prioritize the threats facing their physical, virtual and cloud assets, including those posed by the behaviors of their users. Leveraging its IT data and analytics platform, its solutions enable organizations to manage their cyber security exposure and manage IT operations. Its solutions empower organizations to prevent attacks by providing visibility into vulnerabilities, and allow them to detect compromises, respond to breaches and correct the underlying causes of attacks. By providing a unified IT and security platform, with automated workflow, it enables IT and security to work together to develop, operate and secure their environment.

Receive News & Stock Ratings for Rapid7 Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Rapid7 Inc. and related stocks with our FREE daily email newsletter.