Rally Software Development (NYSE: RALY) is one of 21 public companies in the “Cloud Computing Services” industry, but how does it weigh in compared to its rivals? We will compare Rally Software Development to similar businesses based on the strength of its valuation, profitability, earnings, analyst recommendations, institutional ownership, dividends and risk.

Insider & Institutional Ownership

59.5% of shares of all “Cloud Computing Services” companies are held by institutional investors. 20.1% of shares of all “Cloud Computing Services” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Rally Software Development and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rally Software Development -28.33% -54.33% -25.93%
Rally Software Development Competitors -86.37% -152.25% -21.24%

Analyst Recommendations

This is a breakdown of recent recommendations for Rally Software Development and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rally Software Development 0 0 0 0 N/A
Rally Software Development Competitors 100 495 1567 45 2.71

As a group, “Cloud Computing Services” companies have a potential upside of 2.31%. Given Rally Software Development’s rivals higher probable upside, analysts plainly believe Rally Software Development has less favorable growth aspects than its rivals.

Valuation and Earnings

This table compares Rally Software Development and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Rally Software Development N/A N/A -15.35
Rally Software Development Competitors $996.80 million -$34.68 million 585.50

Rally Software Development’s rivals have higher revenue, but lower earnings than Rally Software Development. Rally Software Development 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.

Summary

Rally Software Development rivals beat Rally Software Development on 6 of the 8 factors compared.

Rally Software Development Company Profile

Rally Software Development Corp. (Rally) is a United States-based company, which offers consulting and training services. The Company offers software as a service (SaaS) platform for organizations to manage the software development lifecycle. The Company’s solutions for Agile includes Agile University, which is an online source for Agile training, and Agile Commons, which is a collaborative Web community focused on software agility. The Company offers a range of Agile platform and products for Application Lifecycle Management (ALM). The Company’s solutions include enterprise scale agile, which consists of Flowdock and leading SAFe; analytics and metrics, which consists of Rally Insights Solution and Agile coaching; product and portfolio management, which include Agile Portfolio Management and transformation consulting, and Team Collaboration, which consists of Rally scrum team launch and test driven development. Its services include transformation consulting, training and coaching.

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