Splunk (NASDAQ: SPLK) is one of 113 publicly-traded companies in the “Software” industry, but how does it weigh in compared to its rivals? We will compare Splunk to related companies based on the strength of its earnings, dividends, analyst recommendations, valuation, institutional ownership, risk and profitability.

Institutional & Insider Ownership

59.4% of shares of all “Software” companies are held by institutional investors. 1.4% of Splunk shares are held by company insiders. Comparatively, 17.5% of shares of all “Software” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Splunk has a beta of 2.01, suggesting that its stock price is 101% more volatile than the S&P 500. Comparatively, Splunk’s rivals have a beta of 0.93, suggesting that their average stock price is 7% less volatile than the S&P 500.

Profitability

This table compares Splunk and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Splunk -36.81% -75.81% -35.89%
Splunk Competitors -57.36% -29.62% -10.90%

Earnings & Valuation

This table compares Splunk and its rivals gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Splunk $949.96 million -$355.18 million -26.60
Splunk Competitors $2.23 billion $415.57 million 324.43

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

Analyst Ratings

This is a summary of current ratings and target prices for Splunk and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Splunk 0 9 26 0 2.74
Splunk Competitors 282 2094 4436 86 2.63

Splunk presently has a consensus price target of $74.32, indicating a potential upside of 8.74%. As a group, “Software” companies have a potential upside of 4.57%. Given Splunk’s stronger consensus rating and higher probable upside, research analysts plainly believe Splunk is more favorable than its rivals.

Summary

Splunk rivals beat Splunk on 7 of the 12 factors compared.

About Splunk

Splunk Inc. (Splunk) is engaged in the development and marketing of software solutions. The Company’s offerings enable users to collect, index, search, explore, monitor and analyze data. Its offerings address diverse data sets that are referred to as big data and are specifically used for machine data. Machine data is produced by various software application and electronic devices in an organization and contains a definitive, time-stamped record of various activities, such as transactions, customer and user activities and security threats. Its products help users in various roles, including information technology (IT), security and business professionals, to analyze their machine data and achieve real-time visibility into and intelligence about their organization’s operations. In addition, the Company offers user behavioral analytics to help detect, respond to and mitigate advanced, hidden and insider threats. The Company offers Splunk Enterprise, which is a machine data platform.

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