Rosetta Stone (NYSE: RST) is one of 67 public companies in the “Application Software” industry, but how does it weigh in compared to its competitors? We will compare Rosetta Stone to similar businesses based on the strength of its dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.
Earnings and Valuation
This table compares Rosetta Stone and its competitors revenue, earnings per share and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Rosetta Stone||$194.09 million||-$27.55 million||-24.93|
|Rosetta Stone Competitors||$980.90 million||$67.84 million||179.66|
Rosetta Stone’s competitors have higher revenue and earnings than Rosetta Stone. Rosetta Stone is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
This is a breakdown of recent recommendations and price targets for Rosetta Stone and its competitors, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Rosetta Stone Competitors||183||1551||2937||98||2.62|
Rosetta Stone currently has a consensus target price of $15.00, suggesting a potential upside of 39.93%. As a group, “Application Software” companies have a potential upside of 4.07%. Given Rosetta Stone’s stronger consensus rating and higher possible upside, research analysts clearly believe Rosetta Stone is more favorable than its competitors.
This table compares Rosetta Stone and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Rosetta Stone Competitors||-66.80%||-94.48%||-18.59%|
Institutional and 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. 13.0% of Rosetta Stone shares are owned by company insiders. Comparatively, 15.7% of shares of all “Application Software” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Volatility and Risk
Rosetta Stone has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500. Comparatively, Rosetta Stone’s competitors have a beta of 2.63, meaning that their average stock price is 163% more volatile than the S&P 500.
About Rosetta Stone
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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