Ability (NASDAQ: ABIL) is one of 185 public companies in the “IT Services & Consulting” industry, but how does it compare to its peers? We will compare Ability to related companies based on the strength of its institutional ownership, valuation, dividends, risk, profitability, analyst recommendations and earnings.

Earnings and Valuation

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

Gross Revenue NetIncome Price/Earnings Ratio
Ability $16.51 million -$8.05 million -1.18
Ability Competitors $2.79 billion $290.25 million 300.58

Ability’s peers have higher revenue and earnings than Ability. Ability 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.

Institutional & Insider Ownership

4.7% of Ability shares are owned by institutional investors. Comparatively, 62.6% of shares of all “IT Services & Consulting” companies are owned by institutional investors. 15.9% of shares of all “IT Services & Consulting” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Ability -109.93% -100.03% -27.91%
Ability Competitors -20.48% -83.31% -4.61%

Analyst Ratings

This is a summary of recent ratings and target prices for Ability and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ability 0 1 0 0 2.00
Ability Competitors 722 4609 7368 156 2.54

Ability currently has a consensus target price of $1.30, indicating a potential upside of 150.00%. As a group, “IT Services & Consulting” companies have a potential upside of 3.01%. Given Ability’s higher possible upside, equities analysts plainly believe Ability is more favorable than its peers.

Risk and Volatility

Ability has a beta of -0.09, meaning that its share price is 109% less volatile than the S&P 500. Comparatively, Ability’s peers have a beta of 1.11, meaning that their average share price is 11% more volatile than the S&P 500.

Summary

Ability peers beat Ability on 11 of the 12 factors compared.

Ability Company Profile

Ability Inc. is a holding company. The Company operates through its subsidiaries, Ability Computer & Software Industries Ltd. and Ability Security Systems Ltd., which provide interception, geolocation and cyber intelligence tools for security and intelligence agencies, military forces, law enforcement agencies and homeland security agencies around the world. The Company is engaged in off-air interception of voice, short message service (SMS), and data communication from both cellular and satellite communication networks, and deciphering solutions for both cellular and satellite communications. The Company’s product categories include Cellular Interception, Cellular Counter Interception, Satellite Interception, Geolocation, Cyber and Crime Prevention. Its Cellular Interception systems include Ultimate Interceptor (ULIN), IBIS, TouchDown, ACIS, AGIS-51 and 3G-Cat. Its Satellite Interception systems include IRIS, ATIS and SLIS.

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