PTC (NASDAQ: PTC) is one of 65 public companies in the “Application Software” industry, but how does it compare to its competitors? We will compare PTC to related businesses based on the strength of its earnings, institutional ownership, profitability, dividends, valuation, analyst recommendations and risk.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PTC 0 3 14 0 2.82
PTC Competitors 181 1516 2899 96 2.62

PTC presently has a consensus price target of $63.31, indicating a potential upside of 3.64%. As a group, “Application Software” companies have a potential upside of 0.88%. Given PTC’s stronger consensus rating and higher probable upside, analysts clearly believe PTC is more favorable than its competitors.

Earnings & Valuation

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

Gross Revenue EBITDA Price/Earnings Ratio
PTC $1.15 billion $91.94 million -174.54
PTC Competitors $761.46 million $137.65 million -12.32

PTC has higher revenue, but lower earnings than its competitors. PTC 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.

Profitability

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

Net Margins Return on Equity Return on Assets
PTC -3.46% 6.69% 2.44%
PTC Competitors -65.96% -93.38% -17.72%

Risk & Volatility

PTC has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500. Comparatively, PTC’s competitors have a beta of 1.61, suggesting that their average stock price is 61% more volatile than the S&P 500.

Insider and Institutional Ownership

97.5% of PTC shares are held by institutional investors. Comparatively, 68.6% of shares of all “Application Software” companies are held by institutional investors. 1.0% of PTC shares are held by company insiders. Comparatively, 15.7% of shares of all “Application Software” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

PTC beats its competitors on 8 of the 12 factors compared.

About PTC

PTC Inc. is a global computer software and services company. The Company offers a portfolio of computer-aided design (CAD) modeling, product lifecycle management (PLM) and service lifecycle management (SLM) solutions for manufacturers to create, operate, and service products. It offers a suite of Internet of Things (IoT) solutions that enables its customers to connect, manage and analyze data, and create applications. Its segments include the Solutions Group, the IoT Group and Professional Services. The Solutions Group segment includes its CAD, PLM and SLM products. The IoT Group segment includes its IoT, analytics and augmented reality (AR) solutions. The Professional Services segment includes consulting, implementation and training business. Its IoT products include ThingWorx, KEPServerEX, Vuforia Studio and Vuforia. Its CAD products include Creo and Mathcad. Its PLM products include Windchill, Integrity, Navigate and Creo View. Its SLM products include Servigistics and Arbortext.

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