Solera (NYSE: SLH) is one of 113 publicly-traded companies in the “Software” industry, but how does it contrast to its peers? We will compare Solera to similar companies based on the strength of its profitability, analyst recommendations, valuation, institutional ownership, earnings, risk and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
Solera 18.15% N/A 6.01%
Solera Competitors -46.18% -24.79% -7.39%

Analyst Ratings

This is a breakdown of recent ratings for Solera and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Solera 0 0 0 0 N/A
Solera Competitors 288 2109 4477 90 2.63

As a group, “Software” companies have a potential upside of 15.24%. Given Solera’s peers higher probable upside, analysts clearly believe Solera has less favorable growth aspects than its peers.

Dividends

Solera pays an annual dividend of $0.90 per share and has a dividend yield of 1.6%. Solera pays out -45.5% of its earnings in the form of a dividend. As a group, “Software” companies pay a dividend yield of 1.1% and pay out 89.4% of their earnings in the form of a dividend. Solera has increased its dividend for 7 consecutive years. Solera is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Earnings & Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Solera N/A N/A -28.20
Solera Competitors $2.20 billion $401.02 million 353.13

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

Insider and Institutional Ownership

57.8% of shares of all “Software” companies are owned by institutional investors. 17.8% of shares of all “Software” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Solera has a beta of 0.26, meaning that its share price is 74% less volatile than the S&P 500. Comparatively, Solera’s peers have a beta of 0.94, meaning that their average share price is 6% less volatile than the S&P 500.

Solera Company Profile

Solera Holdings, Inc. is a United States-based company, which is a provider of risk and asset management software and services to the automotive and property marketplace, including the global property and casualty (P&C) insurance industry. The Company is engaged in cognitive technologies for the automotive and home ownership ecosystems. The Company’s solutions and services bring together consumers, insurers, banks, governments, manufacturers, owners, wholesalers, retailers, and service and repair industries, into digitally unified ecosystems that enable the management, protection and security of assets throughout their lifecycles. The Company’s product platforms include Audatex, AutoPoint, CAP/HPI, Digidentity, Explore Data, Hollander, Identifix, Inpart and TitleTec, as well as the company’s application, Digital Garage. The Company processes over 240 million transactions annually for approximately 200,000 partners in approximately 80 countries.

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