Bottomline Technologies (NASDAQ: EPAY) is one of 113 publicly-traded companies in the “Software” industry, but how does it compare to its competitors? We will compare Bottomline Technologies to similar companies based off the strength of its institutional ownership, earnings, valuation, analyst recommendations, risk, dividends and profitability.

Institutional & Insider Ownership

91.0% of Bottomline Technologies shares are held by institutional investors. Comparatively, 58.1% of shares of all “Software” companies are held by institutional investors. 3.2% of Bottomline Technologies 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 stock will outperform the market over the long term.

Earnings and Valuation

This table compares Bottomline Technologies and its competitors revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Bottomline Technologies $349.41 million $30.12 million -35.31
Bottomline Technologies Competitors $1.57 billion $460.92 million 43.53

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

Profitability

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

Net Margins Return on Equity Return on Assets
Bottomline Technologies -9.48% 4.35% 1.92%
Bottomline Technologies Competitors -24.77% -43.98% -9.20%

Volatility and Risk

Bottomline Technologies has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500. Comparatively, Bottomline Technologies’ competitors have a beta of 0.98, meaning that their average share price is 2% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Bottomline Technologies and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bottomline Technologies 0 1 4 0 2.80
Bottomline Technologies Competitors 388 2280 4324 113 2.59

Bottomline Technologies currently has a consensus target price of $32.00, indicating a potential upside of 4.17%. All “Software” companies have a potential upside of 14.24%. Given Bottomline Technologies’ competitors higher possible upside, analysts plainly believe Bottomline Technologies has less favorable growth aspects than its competitors.

Summary

Bottomline Technologies beats its competitors on 8 of the 13 factors compared.

About Bottomline Technologies

Bottomline Technologies (de), Inc. is engaged in providing a set of cloud-based business payment, digital banking, fraud prevention, payment and financial document solutions. The Company helps businesses pay and get paid. It offers hosted or Software as a Service (SaaS) solutions, as well as software designed to run on-site at the customer’s location. It operates through four segments: Payments and Transactional Documents, Hosted Solutions, Digital Banking and Other. The Payments and Transactional Documents segment is a supplier of software products that provide a range of financial business process management solutions, including making and collecting payments and generating and storing business documents. The Hosted Solutions segment provides customers with SaaS technology offerings. The Digital Banking segment provides solutions to banking and financial institution customers. The Other segment consists of its healthcare and cyber fraud and risk management operating segments.

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