Rapid7 (NASDAQ: RPD) is one of 120 publicly-traded companies in the “Software” industry, but how does it compare to its competitors? We will compare Rapid7 to related companies based on the strength of its institutional ownership, valuation, profitability, analyst recommendations, risk, earnings and dividends.

Institutional & Insider Ownership

70.9% of Rapid7 shares are held by institutional investors. Comparatively, 60.4% of shares of all “Software” companies are held by institutional investors. 56.9% of Rapid7 shares are held by insiders. Comparatively, 17.6% of shares of all “Software” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

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

Gross Revenue EBITDA Price/Earnings Ratio
Rapid7 $178.06 million -$36.89 million -18.50
Rapid7 Competitors $1.49 billion $438.71 million 36.78

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

Volatility & Risk

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

Profitability

This table compares Rapid7 and its competitors’ 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 -44.88% -24.88% -9.79%

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rapid7 0 1 7 0 2.88
Rapid7 Competitors 271 2051 4347 84 2.63

Rapid7 currently has a consensus price target of $20.56, indicating a potential upside of 11.15%. As a group, “Software” companies have a potential upside of 4.03%. Given Rapid7’s stronger consensus rating and higher probable upside, equities analysts clearly believe Rapid7 is more favorable than its competitors.

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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