Elastic (ESTC) vs. Its Rivals Financial Contrast

Elastic (NYSE:ESTC) is one of 959 publicly-traded companies in the “Software” industry, but how does it contrast to its peers? We will compare Elastic to similar companies based on the strength of its dividends, earnings, risk, valuation, profitability, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

97.0% of Elastic shares are held by institutional investors. Comparatively, 41.5% of shares of all “Software” companies are held by institutional investors. 12.7% of Elastic 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 hedge funds, endowments 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 target prices for Elastic and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Elastic	0	13	17	0	2.57
Elastic Competitors	5852	21632	45028	1503	2.57

Elastic currently has a consensus price target of $98.70, indicating a potential upside of 11.64%. As a group, “Software” companies have a potential upside of 28.44%. Given Elastic’s peers stronger consensus rating and higher probable upside, analysts plainly believe Elastic has less favorable growth aspects than its peers.

Volatility & Risk

Elastic has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500. Comparatively, Elastic’s peers have a beta of 1.33, suggesting that their average stock price is 33% more volatile than the S&P 500.

Earnings & Valuation

This table compares Elastic and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Elastic	$1.74 billion	$367.77 million	24.77
Elastic Competitors	$1.79 billion	$382.69 million	112.34

Elastic’s peers have higher revenue and earnings than Elastic. Elastic 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Elastic	20.84%	-0.35%	-0.14%
Elastic Competitors	-596.15%	26.13%	-8.98%

Summary

Elastic peers beat Elastic on 10 of the 13 factors compared.

Elastic Company Profile

Elastic N.V. develops software for search, observability and security. Its products help organizations search and analyze data, monitor applications and infrastructure, and detect and respond to cybersecurity threats. The company’s offerings include the Elastic Stack—built around Elasticsearch and including Kibana, Logstash and Beats—as well as cloud-based services through Elastic Cloud. These tools can be used to work with data from a range of sources and support applications such as enterprise search, log analytics and security monitoring.