Rapid7 (NASDAQ: RPD) is one of 118 public companies in the “Software” industry, but how does it contrast to its rivals? We will compare Rapid7 to similar companies based on the strength of its institutional ownership, dividends, analyst recommendations, earnings, valuation, profitability and risk.

Profitability

This table compares Rapid7 and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rapid7 -23.67% -98.26% -16.93%
Rapid7 Competitors -43.44% -25.23% -9.94%

Analyst Ratings

This is a summary of current ratings and target prices for Rapid7 and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rapid7 0 1 6 0 2.86
Rapid7 Competitors 262 1992 4253 84 2.63

Rapid7 presently has a consensus target price of $20.21, indicating a potential upside of 11.74%. As a group, “Software” companies have a potential upside of 5.85%. Given Rapid7’s stronger consensus rating and higher possible upside, research analysts plainly believe Rapid7 is more favorable than its rivals.

Volatility and Risk

Rapid7 has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500. Comparatively, Rapid7’s rivals have a beta of 0.98, meaning that their average stock price is 2% less volatile than the S&P 500.

Institutional & Insider Ownership

71.0% of Rapid7 shares are held by institutional investors. Comparatively, 61.0% of shares of all “Software” companies are held by institutional investors. 56.9% of Rapid7 shares are held by company insiders. Comparatively, 17.8% 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 is poised for long-term growth.

Valuation & Earnings

This table compares Rapid7 and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Rapid7 $178.06 million -$36.89 million -18.09
Rapid7 Competitors $1.52 billion $446.91 million 41.30

Rapid7’s rivals have higher revenue and earnings than Rapid7. Rapid7 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.

Rapid7 Company Profile

Rapid7, Inc. is a provider analytics for security and information technology (IT) operations that enable organizations to implement an analytics-driven approach to cyber security and IT operations. The Company’s analytics enable organizations to contextualize and prioritize the threats facing their physical, virtual and cloud assets, including those posed by the behaviors of their users. Leveraging its IT data and analytics platform, its solutions enable organizations to manage their cyber security exposure and manage IT operations. Its solutions empower organizations to prevent attacks by providing visibility into vulnerabilities, and allow them to detect compromises, respond to breaches and correct the underlying causes of attacks. By providing a unified IT and security platform, with automated workflow, it enables IT and security to work together to develop, operate and secure their environment.

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