Head to Head Comparison: SS&C Technologies (SSNC) vs. Its Competitors

SS&C Technologies (NASDAQ:SSNC) is one of 203 public companies in the “Professional Services” industry, but how does it contrast to its peers? We will compare SS&C Technologies to similar companies based on the strength of its valuation, earnings, analyst recommendations, risk, profitability, institutional ownership and dividends.

Earnings & Valuation

This table compares SS&C Technologies and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
SS&C Technologies	$6.27 billion	$796.90 million	22.94
SS&C Technologies Competitors	$3.39 billion	$228.40 million	31.75

SS&C Technologies has higher revenue and earnings than its peers. SS&C Technologies 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.

Insider & Institutional Ownership

96.9% of SS&C Technologies shares are held by institutional investors. Comparatively, 57.4% of shares of all “Professional Services” companies are held by institutional investors. 16.0% of SS&C Technologies shares are held by insiders. Comparatively, 17.1% of shares of all “Professional Services” 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.

Profitability

This table compares SS&C Technologies and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SS&C Technologies	12.76%	21.74%	7.25%
SS&C Technologies Competitors	0.34%	36.79%	4.44%

Dividends

SS&C Technologies pays an annual dividend of $1.20 per share and has a dividend yield of 1.5%. SS&C Technologies pays out 34.5% of its earnings in the form of a dividend. As a group, “Professional Services” companies pay a dividend yield of 2.5% and pay out -138.0% of their earnings in the form of a dividend. SS&C Technologies has increased its dividend for 9 consecutive years. SS&C Technologies lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Volatility & Risk

SS&C Technologies has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500. Comparatively, SS&C Technologies’ peers have a beta of 0.96, meaning that their average stock price is 4% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for SS&C Technologies and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SS&C Technologies	1	2	8	1	2.75
SS&C Technologies Competitors	1614	6488	9176	433	2.48

SS&C Technologies presently has a consensus target price of $96.57, indicating a potential upside of 20.96%. As a group, “Professional Services” companies have a potential upside of 26.91%. Given SS&C Technologies’ peers higher possible upside, analysts plainly believe SS&C Technologies has less favorable growth aspects than its peers.

Summary

SS&C Technologies beats its peers on 9 of the 15 factors compared.

About SS&C Technologies

SS&C Technologies Holdings, Inc. provides software and technology-enabled services to financial services and healthcare organizations. Its offerings include software for investment and wealth management, alternative investments, insurance, retirement and healthcare operations, as well as related business process outsourcing and fund administration services. The company was founded in 1986 by William C. Stone and is headquartered in Windsor, Connecticut. Stone serves as chairman and chief executive officer.