Demandware (NYSE: DWRE) is one of 24 publicly-traded companies in the “Cloud Computing Services” industry, but how does it contrast to its competitors? We will compare Demandware to related companies based on the strength of its earnings, dividends, institutional ownership, analyst recommendations, valuation, profitability and risk.

Valuation & Earnings

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

Gross Revenue EBITDA Price/Earnings Ratio
Demandware N/A N/A -62.47
Demandware Competitors $933.33 million $18.40 million -80.55

Demandware’s competitors have higher revenue and earnings than Demandware. Demandware 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Demandware -17.65% -16.30% -12.67%
Demandware Competitors -57.49% -45.40% -16.58%

Risk & Volatility

Demandware has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500. Comparatively, Demandware’s competitors have a beta of 0.95, suggesting that their average stock price is 5% less volatile than the S&P 500.

Insider and Institutional Ownership

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

Analyst Recommendations

This is a summary of recent recommendations for Demandware and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Demandware 0 0 0 0 N/A
Demandware Competitors 75 453 1480 40 2.73

As a group, “Cloud Computing Services” companies have a potential downside of 0.08%. Given Demandware’s competitors higher possible upside, analysts clearly believe Demandware has less favorable growth aspects than its competitors.

Demandware Company Profile

Demandware, Inc. is a provider of enterprise-class cloud commerce solutions for retailers and branded manufacturers, including solutions for digital commerce and point of sale, as well as order management and intelligence capabilities. The Company’s Demandware Commerce offering is a combination of its cloud platform, community and related services that enables customers to establish and execute complex digital commerce solutions. Demandware Commerce facilitates omni-channel processes, multi-brand and multi-site rollouts, predictive merchandising and in-store operations. Its technology platform is the Demandware Commerce Cloud. The Demandware Commerce Cloud consists of over two primary solutions, such as Demandware Digital and Demandware Store. It also offers Demandware LINK, which includes technology, solution and an end-to end partners. LINK Technology Partners provide customers with access to technologies that complement the Demandware Commerce Cloud through pre-built integrations.

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