Reviewing Porch Group (PRCH) and Its Competitors

Porch Group (NASDAQ:PRCH) is one of 954 publicly-traded companies in the “Software” industry, but how does it compare to its peers? We will compare Porch Group to similar businesses based on the strength of its profitability, valuation, earnings, risk, dividends, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

48.5% of Porch Group shares are held by institutional investors. Comparatively, 41.9% of shares of all “Software” companies are held by institutional investors. 27.8% of Porch Group shares are held by insiders. Comparatively, 19.9% of shares of all “Software” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Porch Group and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Porch Group	$482.41 million	$15.32 million	271.00
Porch Group Competitors	$1.80 billion	$385.28 million	109.10

Porch Group’s peers have higher revenue and earnings than Porch Group. Porch Group is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of current ratings for Porch Group and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Porch Group	0	2	6	2	3.00
Porch Group Competitors	5780	21582	44971	1500	2.57

Porch Group currently has a consensus target price of $20.79, indicating a potential downside of 4.12%. As a group, “Software” companies have a potential upside of 28.51%. Given Porch Group’s peers higher probable upside, analysts clearly believe Porch Group has less favorable growth aspects than its peers.

Volatility & Risk

Porch Group has a beta of 3.16, meaning that its share price is 216% more volatile than the S&P 500. Comparatively, Porch Group’s peers have a beta of 1.34, meaning that their average share price is 34% more volatile than the S&P 500.

Profitability

This table compares Porch Group and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Porch Group	1.81%	39.28%	1.17%
Porch Group Competitors	-607.19%	26.73%	-8.88%

Summary

Porch Group beats its peers on 9 of the 13 factors compared.

Porch Group Company Profile

Porch Group, Inc. is a technology company that provides software and services for the homeownership market. Its platform serves home-service professionals and related businesses, including home inspectors, and offers tools for managing operations, customer relationships, scheduling and business growth. The company also provides insurance products and services for homeowners and works with real estate and mortgage professionals. Its offerings include software for home inspectors and mortgage companies, alongside insurance capabilities that support customers through the homebuying and homeownership process.