Demandware (NYSE: DWRE) is one of 24 publicly-traded companies in the “Cloud Computing Services” industry, but how does it contrast to its rivals? We will compare Demandware to similar businesses based off the strength of its earnings, risk, institutional ownership, profitability, dividends, analyst recommendations and valuation.

Risk & Volatility

Demandware has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500. Comparatively, Demandware’s rivals have a beta of 0.95, indicating that their average share price is 5% less volatile than the S&P 500.

Insider & Institutional Ownership

58.1% of shares of all “Cloud Computing Services” companies are held by institutional investors. 22.0% of shares of all “Cloud Computing Services” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for Demandware and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Demandware 0 0 0 0 N/A
Demandware Competitors 100 522 1515 47 2.69

All “Cloud Computing Services” companies have a potential upside of 10.33%. Given Demandware’s rivals higher probable upside, analysts plainly believe Demandware has less favorable growth aspects than its rivals.

Earnings and Valuation

This table compares Demandware and its rivals gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Demandware N/A N/A -62.47
Demandware Competitors $926.43 million $20.88 million -78.73

Demandware’s rivals have higher revenue and earnings than Demandware. Demandware is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently the more expensive than other companies in its industry.

Profitability

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

Net Margins Return on Equity Return on Assets
Demandware -17.65% -16.30% -12.67%
Demandware Competitors -50.21% -38.64% -14.03%

About Demandware

Demandware, Inc. is a provider of enterprise-class cloud commerce solutions for retailers and branded manufacturers, including solutions for digital commerce and point of sale, as well as order management and intelligence capabilities. The Company’s Demandware Commerce offering is a combination of its cloud platform, community and related services that enables customers to establish and execute complex digital commerce solutions. Demandware Commerce facilitates omni-channel processes, multi-brand and multi-site rollouts, predictive merchandising and in-store operations. Its technology platform is the Demandware Commerce Cloud. The Demandware Commerce Cloud consists of over two primary solutions, such as Demandware Digital and Demandware Store. It also offers Demandware LINK, which includes technology, solution and an end-to end partners. LINK Technology Partners provide customers with access to technologies that complement the Demandware Commerce Cloud through pre-built integrations.

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