Fatpipe Inc/UT (FATN) and Its Competitors Financial Analysis

Fatpipe Inc/UT (NASDAQ:FATN) is one of 959 publicly-traded companies in the “Software” industry, but how does it contrast to its peers? We will compare Fatpipe Inc/UT to similar companies based on the strength of its profitability, dividends, risk, valuation, earnings, institutional ownership and analyst recommendations.

Valuation and Earnings

This table compares Fatpipe Inc/UT and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Fatpipe Inc/UT	$19.21 million	$4.97 million	9.75
Fatpipe Inc/UT Competitors	$1.79 billion	$382.68 million	112.22

Fatpipe Inc/UT’s peers have higher revenue and earnings than Fatpipe Inc/UT. Fatpipe Inc/UT 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.

Insider & Institutional Ownership

41.5% of shares of all “Software” companies are held by institutional investors. 47.1% of Fatpipe Inc/UT shares are held by company insiders. Comparatively, 19.9% 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 company is poised for long-term growth.

Profitability

This table compares Fatpipe Inc/UT and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fatpipe Inc/UT	31.64%	30.72%	23.16%
Fatpipe Inc/UT Competitors	-599.60%	26.31%	-8.93%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Fatpipe Inc/UT and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fatpipe Inc/UT	1	0	3	0	2.50
Fatpipe Inc/UT Competitors	5840	21616	45010	1500	2.57

Fatpipe Inc/UT currently has a consensus price target of $9.33, suggesting a potential upside of 99.43%. As a group, “Software” companies have a potential upside of 28.25%. Given Fatpipe Inc/UT’s higher probable upside, equities research analysts clearly believe Fatpipe Inc/UT is more favorable than its peers.

Volatility & Risk

Fatpipe Inc/UT has a beta of 2.92, suggesting that its stock price is 192% more volatile than the S&P 500. Comparatively, Fatpipe Inc/UT’s peers have a beta of 1.35, suggesting that their average stock price is 35% more volatile than the S&P 500.

Summary

Fatpipe Inc/UT beats its peers on 7 of the 13 factors compared.

About Fatpipe Inc/UT

FatPipe Inc. is a Utah-based networking technology company that develops software-defined wide area networking (SD-WAN) and WAN optimization solutions. Its products are designed to help organizations improve network performance, reliability, security and connectivity across offices, data centers, cloud environments and remote locations. The company’s offerings use multiple network connections to provide traffic management, failover and load balancing. FatPipe’s portfolio has included SD-WAN, WAN virtualization, VPN, secure connectivity and network optimization solutions intended for enterprises, service providers, government organizations and other institutions.