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

Volatility and Risk

Hortonworks has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500. Comparatively, Hortonworks’ peers have a beta of 1.13, suggesting that their average share price is 13% more volatile than the S&P 500.

Earnings and Valuation

This table compares Hortonworks and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Hortonworks $217.29 million -$223.00 million -4.26
Hortonworks Competitors $1.27 billion $348.09 million 35.78

Hortonworks’ peers have higher revenue and earnings than Hortonworks. Hortonworks is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Hortonworks and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hortonworks -107.07% -765.37% -100.38%
Hortonworks Competitors -24.87% -210.53% -7.71%

Institutional & Insider Ownership

50.1% of Hortonworks shares are owned by institutional investors. Comparatively, 60.3% of shares of all “Enterprise Software” companies are owned by institutional investors. 22.5% of Hortonworks shares are owned by insiders. Comparatively, 22.5% of shares of all “Enterprise Software” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings for Hortonworks and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hortonworks 0 3 13 0 2.81
Hortonworks Competitors 347 2062 3920 107 2.59

Hortonworks presently has a consensus target price of $19.23, suggesting a potential upside of 18.86%. As a group, “Enterprise Software” companies have a potential upside of 2.76%. Given Hortonworks’ stronger consensus rating and higher probable upside, research analysts clearly believe Hortonworks is more favorable than its peers.

Summary

Hortonworks peers beat Hortonworks on 7 of the 12 factors compared.

About Hortonworks

Hortonworks, Inc. is a provider and distributor of enterprise-scale data management software platforms. The Company’s product offerings include Hortonworks Data Platform (HDP), Hortonworks Sandbox and Hortonworks DataFlow Platform (HDF). It provides support subscription offerings and related professional services for its enterprise-scale Connected Data Platforms, such as HDP and HDF. Its Data at Rest solution, the HDP, is an enterprise-scale data management platform built entirely on open source software, including Apache Hadoop. HDP combines computer servers with local storage and open source software technology to create a distributed compute and storage platform for data sets that is secure and scalable over petabytes of data within thousands of servers or nodes. Its Data in Motion solution, the HDF, is an enterprise-scale data ingest platform built entirely on open source software, including Apache NiFi.

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