Head to Head Review: Stem (STEM) & Its Rivals

Stem (NYSE:STEM) is one of 953 public companies in the “Software” industry, but how does it weigh in compared to its rivals? We will compare Stem to similar businesses based on the strength of its earnings, risk, dividends, institutional ownership, valuation, analyst recommendations and profitability.

Institutional and Insider Ownership

61.6% of Stem shares are owned by institutional investors. Comparatively, 42.0% of shares of all “Software” companies are owned by institutional investors. 5.1% of Stem shares are owned by company insiders. Comparatively, 19.8% of shares of all “Software” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Stem and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Stem	$148.03 million	$137.76 million	-0.27
Stem Competitors	$1.90 billion	$385.94 million	110.46

Stem’s rivals have higher revenue and earnings than Stem. Stem 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.

Volatility & Risk

Stem has a beta of 1.58, indicating that its stock price is 58% more volatile than the S&P 500. Comparatively, Stem’s rivals have a beta of 1.27, indicating that their average stock price is 27% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Stem	-49.37%	N/A	-21.85%
Stem Competitors	-620.53%	20.98%	-8.95%

Analyst Ratings

This is a breakdown of current ratings and price targets for Stem and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stem	1	4	1	0	2.00
Stem Competitors	5717	21424	44694	1492	2.57

Stem currently has a consensus price target of $6.54, suggesting a potential upside of 188.18%. As a group, “Software” companies have a potential upside of 28.18%. Given Stem’s higher possible upside, research analysts clearly believe Stem is more favorable than its rivals.

Summary

Stem rivals beat Stem on 9 of the 13 factors compared.

About Stem

Stem, Inc. operates as a digitally connected, intelligent, and renewable energy storage network provider worldwide. The company offers energy storage hardware sourced from original equipment manufacturers (OEMs); edge hardware to aid in the collection of site data and real-time operation and control of the site and other optional equipment; and Athena, a software platform, which offers battery hardware and software-enabled services to operate the energy storage systems. It serves commercial and industrial enterprises, independent power producers, renewable project developers, and utilities and grid operators. The company was incorporated in 2009 and is headquartered in San Francisco, California.