Bottomline Technologies (NASDAQ: EPAY) is one of 114 publicly-traded companies in the “Software” industry, but how does it contrast to its competitors? We will compare Bottomline Technologies to related companies based on the strength of its analyst recommendations, profitability, risk, institutional ownership, valuation, earnings and dividends.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bottomline Technologies 0 1 4 0 2.80
Bottomline Technologies Competitors 388 2289 4340 114 2.59

Bottomline Technologies currently has a consensus price target of $32.00, suggesting a potential upside of 3.33%. As a group, “Software” companies have a potential upside of 10.64%. Given Bottomline Technologies’ competitors higher possible upside, analysts clearly believe Bottomline Technologies has less favorable growth aspects than its competitors.

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 -38.77% -44.05% -9.70%

Risk & Volatility

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

Institutional & Insider Ownership

91.0% of Bottomline Technologies shares are owned by institutional investors. Comparatively, 58.1% of shares of all “Software” companies are owned by institutional investors. 3.2% of Bottomline Technologies shares are owned by company insiders. Comparatively, 19.9% of shares of all “Software” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Bottomline Technologies and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Bottomline Technologies $349.41 million $30.12 million -35.60
Bottomline Technologies Competitors $1.57 billion $463.90 million 43.94

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 more affordable than other companies in its industry.

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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