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

Analyst Ratings

This is a breakdown of recent ratings and target prices for RealNetworks and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RealNetworks 0 0 1 0 3.00
RealNetworks Competitors 262 1998 4257 84 2.63

RealNetworks presently has a consensus target price of $6.50, suggesting a potential upside of 32.65%. As a group, “Software” companies have a potential upside of 4.19%. Given RealNetworks’ stronger consensus rating and higher possible upside, research analysts clearly believe RealNetworks is more favorable than its peers.

Risk and Volatility

RealNetworks has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500. Comparatively, RealNetworks’ peers 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 RealNetworks and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RealNetworks -20.48% -36.41% -24.73%
RealNetworks Competitors -43.44% -25.23% -9.94%

Institutional and Insider Ownership

51.7% of RealNetworks shares are owned by institutional investors. Comparatively, 58.4% of shares of all “Software” companies are owned by institutional investors. 37.9% of RealNetworks shares are owned by insiders. Comparatively, 20.0% of shares of all “Software” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares RealNetworks and its peers revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
RealNetworks $126.19 million -$17.23 million -7.10
RealNetworks Competitors $1.49 billion $438.76 million 40.68

RealNetworks’ peers have higher revenue and earnings than RealNetworks. RealNetworks 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.

Summary

RealNetworks peers beat RealNetworks on 7 of the 12 factors compared.

RealNetworks Company Profile

RealNetworks, Inc. creates applications and services that enable to connect with digital media. The Company connects consumers with their digital media directly and through partners, focusing on supporting various network, devices, media types and social networks. It operates through three segments: Consumer Media, Mobile Services and Games. Within its Consumer Media business, its RealPlayer media player software includes features and services that enable consumers to discover, play, download, manage and edit digital video, stream audio and video, download and save photos and videos from the Web, transfer and share content on social networks, and edit their own photo and video content. The Mobile Services segment consists of digital media services it provides to mobile and online service providers as software as a service offerings. It develops, publishes, licenses and distributes casual games.

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