Datawatch Corporation (NASDAQ: DWCH) is one of 97 publicly-traded companies in the “Enterprise Software” industry, but how does it weigh in compared to its rivals? We will compare Datawatch Corporation to related businesses based on the strength of its earnings, analyst recommendations, institutional ownership, risk, profitability, valuation and dividends.

Valuation and Earnings

This table compares Datawatch Corporation and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Datawatch Corporation $34.67 million -$3.87 million -27.79
Datawatch Corporation Competitors $1.27 billion $348.15 million 37.72

Datawatch Corporation’s rivals have higher revenue and earnings than Datawatch Corporation. Datawatch Corporation 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.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Datawatch Corporation and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Datawatch Corporation 0 1 1 0 2.50
Datawatch Corporation Competitors 343 2040 3878 107 2.59

Datawatch Corporation currently has a consensus price target of $10.00, indicating a potential downside of 16.32%. As a group, “Enterprise Software” companies have a potential upside of 4.35%. Given Datawatch Corporation’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Datawatch Corporation has less favorable growth aspects than its rivals.

Risk and Volatility

Datawatch Corporation has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500. Comparatively, Datawatch Corporation’s rivals have a beta of 1.13, indicating that their average share price is 13% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Datawatch Corporation -14.74% -10.87% -7.53%
Datawatch Corporation Competitors -25.29% -211.37% -8.18%

Institutional & Insider Ownership

40.7% of Datawatch Corporation shares are owned by institutional investors. Comparatively, 59.2% of shares of all “Enterprise Software” companies are owned by institutional investors. 17.7% of Datawatch Corporation shares are owned by insiders. Comparatively, 23.4% of shares of all “Enterprise Software” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Datawatch Corporation rivals beat Datawatch Corporation on 9 of the 12 factors compared.

About Datawatch Corporation

Datawatch Corporation is engaged in the design, development, marketing, distribution and support of business computer software primarily for the self-service data preparation and visual data discovery markets. The Company also provides services, including implementation and support of its software products, as well as training on their use and administration. The Company’s product family includes Datawatch Monarch, Datawatch Panopticon and Datawatch Report Mining Server (RMS). The Company offers its enterprise products through perpetual licenses and subscription pricing models. The Company also offers educational services for customers and partners implementing and learning about the platform, maintenance and support, and professional services to provide in-depth technical assistance for software implementations. The Company offers an array of live and virtual classroom instruction, including private onsite classes.

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