Agilysys (AGYS) vs. Its Peers Financial Analysis

Agilysys (NASDAQ:AGYS) is one of 953 publicly-traded companies in the “Software” industry, but how does it compare to its rivals? We will compare Agilysys to similar companies based on the strength of its risk, dividends, analyst recommendations, earnings, profitability, institutional ownership and valuation.

Institutional & Insider Ownership

88.0% of Agilysys shares are owned by institutional investors. Comparatively, 41.9% of shares of all “Software” companies are owned by institutional investors. 8.7% of Agilysys shares are owned by insiders. Comparatively, 19.9% of shares of all “Software” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Agilysys and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Agilysys	$319.31 million	$38.79 million	78.17
Agilysys Competitors	$1.80 billion	$385.91 million	108.47

Agilysys’ rivals have higher revenue and earnings than Agilysys. Agilysys 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Agilysys	12.88%	12.98%	9.01%
Agilysys Competitors	-612.40%	21.13%	-8.86%

Analyst Ratings

This is a summary of current recommendations and price targets for Agilysys and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Agilysys	0	3	5	0	2.62
Agilysys Competitors	5755	21554	44944	1498	2.57

Agilysys currently has a consensus price target of $141.25, suggesting a potential upside of 15.83%. As a group, “Software” companies have a potential upside of 29.97%. Given Agilysys’ rivals higher possible upside, analysts plainly believe Agilysys has less favorable growth aspects than its rivals.

Volatility & Risk

Agilysys has a beta of 0.4, meaning that its stock price is 60% less volatile than the S&P 500. Comparatively, Agilysys’ rivals have a beta of 1.34, meaning that their average stock price is 34% more volatile than the S&P 500.

Summary

Agilysys rivals beat Agilysys on 8 of the 13 factors compared.

Agilysys Company Profile

Agilysys, Inc. develops software and technology solutions for the hospitality industry. Its products support hotels, resorts, casinos, restaurants, cruise lines, and other organizations that serve guests. The company’s offerings include property management and point-of-sale systems, as well as tools for inventory and procurement, guest engagement, payments, and operational analytics. Agilysys also provides implementation, support, and other services related to its software. Founded in 1963, Agilysys is headquartered in Alpharetta, Georgia, and serves hospitality businesses in North America and international markets.