Critical Analysis: SharpSpring (SHSP) versus The Competition

SharpSpring (NASDAQ: SHSP) is one of 194 publicly-traded companies in the “Prepackaged software” industry, but how does it contrast to its rivals? We will compare SharpSpring to related businesses based on the strength of its risk, dividends, analyst recommendations, profitability, valuation, earnings and institutional ownership.

Institutional and Insider Ownership

26.0% of SharpSpring shares are owned by institutional investors. Comparatively, 60.1% of shares of all “Prepackaged software” companies are owned by institutional investors. 28.3% of SharpSpring shares are owned by company insiders. Comparatively, 20.7% of shares of all “Prepackaged software” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
SharpSpring -42.41% -35.25% -26.08%
SharpSpring Competitors -3.62% -35.57% -0.60%

Earnings & Valuation

This table compares SharpSpring and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
SharpSpring $13.45 million -$4.97 million -22.49
SharpSpring Competitors $1.83 billion $196.12 million -4.34

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

Volatility & Risk

SharpSpring has a beta of -2.23, meaning that its share price is 323% less volatile than the S&P 500. Comparatively, SharpSpring’s rivals have a beta of -14.62, meaning that their average share price is 1,562% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for SharpSpring and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SharpSpring 0 0 1 0 3.00
SharpSpring Competitors 1491 7120 13414 627 2.58

SharpSpring currently has a consensus target price of $12.00, suggesting a potential downside of 9.57%. As a group, “Prepackaged software” companies have a potential upside of 20.29%. Given SharpSpring’s rivals higher possible upside, analysts plainly believe SharpSpring has less favorable growth aspects than its rivals.

Summary

SharpSpring rivals beat SharpSpring on 7 of the 12 factors compared.

About SharpSpring

SharpSpring, Inc. operates as a cloud-based marketing technology company worldwide. The company offers SharpSpring, a marketing automation solution for small and mid-size businesses. It markets and sells its products and services through sales teams and third party resellers. The company was formerly known as SMTP, Inc. and changed its name to SharpSpring, Inc. in December 2015. SharpSpring, Inc. was incorporated in 1998 and is headquartered in Gainesville, Florida.

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