Financial Comparison: Marketo (MKTO) and Its Rivals

Marketo (NASDAQ: MKTO) is one of 65 publicly-traded companies in the “Application Software” industry, but how does it contrast to its rivals? We will compare Marketo to related companies based on the strength of its valuation, institutional ownership, dividends, earnings, analyst recommendations, risk and profitability.

Profitability

This table compares Marketo and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Marketo -23.20% -98.33% -27.18%
Marketo Competitors -62.12% -93.82% -16.40%

Insider and Institutional Ownership

68.6% of shares of all “Application Software” companies are owned by institutional investors. 15.7% of shares of all “Application Software” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Marketo has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500. Comparatively, Marketo’s rivals have a beta of 1.61, indicating that their average share price is 61% more volatile than the S&P 500.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Marketo 0 0 0 0 N/A
Marketo Competitors 179 1516 2891 96 2.62

As a group, “Application Software” companies have a potential upside of 4.11%. Given Marketo’s rivals higher probable upside, analysts plainly believe Marketo has less favorable growth aspects than its rivals.

Valuation & Earnings

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

Gross Revenue EBITDA Price/Earnings Ratio
Marketo N/A N/A -20.34
Marketo Competitors $761.46 million $137.65 million -12.13

Marketo’s rivals have higher revenue and earnings than Marketo. Marketo 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

Marketo rivals beat Marketo on 7 of the 8 factors compared.

About Marketo

Marketo, Inc. is a United States-based provider of a cloud-based Engagement Marketing software platform, which enables organizations to involve in engagement marketing. The Company’s platform offers a range applications across various categories, including Marketing Automation, which helps to organize personalized multi-channel marketing campaigns and workflows; Email Marketing, which provides the ability to tap the insights captured in the Audience Hub to send e-mail messages; Mobile Engagement, which engages customers on their mobile devices; Digital Ads, which allows marketers to focus on behavioral data captured in the Audience Hub for personalized digital advertisements; Web Personalization, which helps in personalizing experiences to engage people; Marketing Analytics; Predictive Content, which discovers Website assets, such as e-books and case studies; Marketing Calendar, and Sales Insight. It offers solutions, such as Lead Management solution and Consumer Marketing solution.

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