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

Earnings and Valuation

This table compares RealNetworks and its competitors gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
RealNetworks $126.19 million -$17.23 million -6.87
RealNetworks Competitors $1.49 billion $438.71 million 36.78

RealNetworks’ competitors have higher revenue and earnings than RealNetworks. RealNetworks 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.

Institutional and Insider Ownership

51.7% of RealNetworks shares are owned by institutional investors. Comparatively, 60.4% of shares of all “Software” companies are owned by institutional investors. 37.9% of RealNetworks shares are owned by company insiders. Comparatively, 17.6% of shares of all “Software” companies are owned 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.

Profitability

This table compares RealNetworks and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RealNetworks -20.48% -36.41% -24.73%
RealNetworks Competitors -44.84% -24.88% -9.79%

Risk & Volatility

RealNetworks has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500. Comparatively, RealNetworks’ competitors have a beta of 0.98, indicating that their average share price is 2% less volatile than the S&P 500.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RealNetworks 0 0 1 0 3.00
RealNetworks Competitors 271 2051 4347 84 2.63

RealNetworks currently has a consensus price target of $6.50, suggesting a potential upside of 37.13%. As a group, “Software” companies have a potential upside of 4.02%. Given RealNetworks’ stronger consensus rating and higher probable upside, research analysts clearly believe RealNetworks is more favorable than its competitors.

Summary

RealNetworks competitors beat RealNetworks on 7 of the 12 factors compared.

About RealNetworks

RealNetworks, Inc. creates applications and services that enable to connect with digital media. The Company connects consumers with their digital media directly and through partners, focusing on supporting various network, devices, media types and social networks. It operates through three segments: Consumer Media, Mobile Services and Games. Within its Consumer Media business, its RealPlayer media player software includes features and services that enable consumers to discover, play, download, manage and edit digital video, stream audio and video, download and save photos and videos from the Web, transfer and share content on social networks, and edit their own photo and video content. The Mobile Services segment consists of digital media services it provides to mobile and online service providers as software as a service offerings. It develops, publishes, licenses and distributes casual games.

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