Solera (NYSE: SLH) is one of 110 publicly-traded companies in the “Software” industry, but how does it compare to its competitors? We will compare Solera to related companies based on the strength of its analyst recommendations, valuation, risk, dividends, institutional ownership, profitability and earnings.

Risk & Volatility

Solera has a beta of 0.26, meaning that its stock price is 74% less volatile than the S&P 500. Comparatively, Solera’s competitors have a beta of 1.01, meaning that their average stock price is 1% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Solera 18.15% N/A 6.01%
Solera Competitors -47.70% -23.86% -7.29%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Solera and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Solera 0 0 0 0 N/A
Solera Competitors 288 2101 4429 90 2.63

As a group, “Software” companies have a potential upside of 13.14%. Given Solera’s competitors higher probable upside, analysts clearly believe Solera has less favorable growth aspects than its competitors.

Earnings and Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Solera N/A N/A -28.20
Solera Competitors $2.20 billion $401.02 million 268.29

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

Insider and Institutional Ownership

57.8% of shares of all “Software” companies are owned by institutional investors. 18.0% of shares of all “Software” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Solera pays an annual dividend of $0.90 per share and has a dividend yield of 1.6%. Solera pays out -45.5% of its earnings in the form of a dividend. As a group, “Software” companies pay a dividend yield of 1.1% and pay out 88.2% of their earnings in the form of a dividend. Solera has increased its dividend for 7 consecutive years. Solera is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

About Solera

Solera Holdings, Inc. is a United States-based company, which is a provider of risk and asset management software and services to the automotive and property marketplace, including the global property and casualty (P&C) insurance industry. The Company is engaged in cognitive technologies for the automotive and home ownership ecosystems. The Company’s solutions and services bring together consumers, insurers, banks, governments, manufacturers, owners, wholesalers, retailers, and service and repair industries, into digitally unified ecosystems that enable the management, protection and security of assets throughout their lifecycles. The Company’s product platforms include Audatex, AutoPoint, CAP/HPI, Digidentity, Explore Data, Hollander, Identifix, Inpart and TitleTec, as well as the company’s application, Digital Garage. The Company processes over 240 million transactions annually for approximately 200,000 partners in approximately 80 countries.

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