Rosetta Stone (RST) vs. The Competition Head to Head Comparison

Rosetta Stone (NYSE: RST) is one of 66 publicly-traded companies in the “Application Software” industry, but how does it weigh in compared to its peers? We will compare Rosetta Stone to similar companies based on the strength of its valuation, earnings, risk, dividends, analyst recommendations, institutional ownership and profitability.

Earnings and Valuation

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

Gross Revenue EBITDA Price/Earnings Ratio
Rosetta Stone $193.97 million $2.56 million -19.19
Rosetta Stone Competitors $761.35 million $137.63 million 35.33

Rosetta Stone’s peers have higher revenue and earnings than Rosetta Stone. Rosetta Stone 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Rosetta Stone -6.06% -926.26% -4.89%
Rosetta Stone Competitors -66.89% -94.61% -18.59%

Institutional & Insider Ownership

73.4% of Rosetta Stone shares are owned by institutional investors. Comparatively, 68.5% of shares of all “Application Software” companies are owned by institutional investors. 14.5% of Rosetta Stone shares are owned by insiders. Comparatively, 15.7% of shares of all “Application Software” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

Rosetta Stone has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500. Comparatively, Rosetta Stone’s peers have a beta of 1.61, meaning that their average share price is 61% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Rosetta Stone and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rosetta Stone 0 0 1 0 3.00
Rosetta Stone Competitors 181 1529 2917 98 2.62

Rosetta Stone currently has a consensus price target of $15.00, indicating a potential upside of 47.49%. As a group, “Application Software” companies have a potential upside of 7.36%. Given Rosetta Stone’s stronger consensus rating and higher possible upside, equities analysts plainly believe Rosetta Stone is more favorable than its peers.

Rosetta Stone Company Profile

Rosetta Stone Inc. (Rosetta Stone) offers personalized language and reading programs. The Company’s solutions are used by schools, businesses, government organizations and individuals around the world. Its segments include Enterprise & Education, which derives revenues from sales to educational institutions, corporations and government agencies worldwide, and Consumer, which derives revenue from sales to individuals and retail partners. Its cloud-based programs allow users to learn online or on-the-go via tablet or smartphone, whether in a classroom, corporate setting, or personal learning environment. Its Fit Brains business offers personalized brain training programs. The Company offers courses in over 30 languages across formats, including Web-based software subscriptions, digital downloads, mobile applications, and perpetual compact disc packages. It also offers a portfolio of technology-based learning products for personal use to the global consumer.

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