Solera (SLH) vs. Its Competitors Head-To-Head Analysis

Solera (NYSE: SLH) is one of 111 publicly-traded companies in the “Software” industry, but how does it compare to its rivals? We will compare Solera to similar companies based on the strength of its dividends, profitability, earnings, valuation, analyst recommendations, risk and institutional ownership.

Volatility and Risk

Solera has a beta of 0.26, suggesting that its share price is 74% less volatile than the S&P 500. Comparatively, Solera’s rivals have a beta of 1.01, suggesting that their average share price is 1% more volatile than the S&P 500.

Insider and Institutional Ownership

57.8% of shares of all “Software” companies are owned by institutional investors. 18.0% of shares of all “Software” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Solera and its rivals 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 504.39

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

Analyst Recommendations

This is a summary of current ratings and price targets for Solera and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Solera 0 0 0 0 N/A
Solera Competitors 290 2105 4484 91 2.63

As a group, “Software” companies have a potential upside of 14.62%. Given Solera’s rivals higher probable upside, analysts clearly believe Solera has less favorable growth aspects than its rivals.

Profitability

This table compares Solera and its rivals’ 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 -46.43% -24.74% -7.33%

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 89.3% of their earnings in the form of a dividend. Solera has raised its dividend for 7 consecutive years. Solera is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

About Solera

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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