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

Profitability

This table compares Datawatch Corporation and its competitors’ 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 -25.57% -221.71% -8.29%

Earnings & Valuation

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

Gross Revenue EBITDA Price/Earnings Ratio
Datawatch Corporation $34.67 million -$3.87 million -29.19
Datawatch Corporation Competitors $1.27 billion $348.12 million 34.27

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

Datawatch Corporation has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500. Comparatively, Datawatch Corporation’s competitors have a beta of 1.12, meaning that their average stock price is 12% more volatile than the S&P 500.

Insider and Institutional Ownership

40.8% of Datawatch Corporation shares are held by institutional investors. Comparatively, 59.2% of shares of all “Enterprise Software” companies are held by institutional investors. 17.7% of Datawatch Corporation shares are held by company insiders. Comparatively, 23.5% of shares of all “Enterprise Software” companies are held by company 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 Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Datawatch Corporation 0 1 1 0 2.50
Datawatch Corporation Competitors 354 2087 3968 110 2.59

Datawatch Corporation currently has a consensus price target of $10.00, indicating a potential downside of 20.32%. As a group, “Enterprise Software” companies have a potential upside of 0.08%. Given Datawatch Corporation’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Datawatch Corporation has less favorable growth aspects than its competitors.

Summary

Datawatch Corporation competitors 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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