Analyzing VTEX (VTEX) and Its Peers

VTEX (NYSE:VTEX) is one of 953 public companies in the “Software” industry, but how does it weigh in compared to its competitors? We will compare VTEX to similar businesses based on the strength of its profitability, earnings, dividends, risk, institutional ownership, valuation and analyst recommendations.

Insider & Institutional Ownership

63.7% of VTEX shares are held by institutional investors. Comparatively, 42.0% of shares of all “Software” companies are held by institutional investors. 40.9% of VTEX shares are held by company insiders. Comparatively, 19.8% of shares of all “Software” companies are held by company 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.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for VTEX and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VTEX	0	6	2	0	2.25
VTEX Competitors	5725	21440	44722	1492	2.57

VTEX presently has a consensus target price of $4.60, indicating a potential upside of 16.02%. As a group, “Software” companies have a potential upside of 27.79%. Given VTEX’s competitors stronger consensus rating and higher possible upside, analysts clearly believe VTEX has less favorable growth aspects than its competitors.

Earnings and Valuation

This table compares VTEX and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
VTEX	$240.52 million	$20.01 million	24.78
VTEX Competitors	$1.80 billion	$385.91 million	110.32

VTEX’s competitors have higher revenue and earnings than VTEX. VTEX 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.

Profitability

This table compares VTEX and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
VTEX	11.98%	12.98%	8.76%
VTEX Competitors	-612.70%	20.86%	-8.99%

Volatility & Risk

VTEX has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, VTEX’s competitors have a beta of 1.19, indicating that their average stock price is 19% more volatile than the S&P 500.

Summary

VTEX competitors beat VTEX on 9 of the 13 factors compared.

About VTEX

VTEX provides software-as-a-service digital commerce platform for enterprise brands and retailers. Its platform enables customers to execute their commerce strategy, including building online stores, integrating, and managing orders across channels, and creating marketplaces to sell products from third-party vendors. It has operations in Brazil, Argentina, Chile, Colombia, France, Italy, Mexico, Peru, Portugal, Romania, Singapore, Spain, the United Kingdom, and the United States. VTEX was founded in 2000 and is headquartered in London, the United Kingdom.