Critical Survey: Onespan (OSPN) and Its Competitors

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Onespan	27.52%	15.96%	11.19%
Onespan Competitors	-607.19%	26.73%	-8.88%

Dividends

Onespan pays an annual dividend of $0.52 per share and has a dividend yield of 2.4%. Onespan pays out 28.7% of its earnings in the form of a dividend. As a group, “Software” companies pay a dividend yield of 1.9% and pay out 45.0% of their earnings in the form of a dividend. Onespan is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Onespan	0	3	2	0	2.40
Onespan Competitors	5780	21580	44960	1500	2.57

Onespan presently has a consensus target price of $24.00, suggesting a potential upside of 9.49%. As a group, “Software” companies have a potential upside of 29.41%. Given Onespan’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Onespan has less favorable growth aspects than its competitors.

Insider and Institutional Ownership

95.5% of Onespan shares are held by institutional investors. Comparatively, 41.9% of shares of all “Software” companies are held by institutional investors. 2.0% of Onespan 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, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Onespan and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Onespan	$253.21 million	$72.90 million	12.11
Onespan Competitors	$1.80 billion	$385.28 million	108.99

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

Risk & Volatility

Onespan has a beta of 1.52, suggesting that its share price is 52% more volatile than the S&P 500. Comparatively, Onespan’s competitors have a beta of 1.34, suggesting that their average share price is 34% more volatile than the S&P 500.

Summary

Onespan competitors beat Onespan on 9 of the 15 factors compared.

About Onespan

OneSpan Inc. provides cybersecurity and digital agreement solutions that help organizations protect digital interactions and transactions. Its offerings are used by financial institutions, government agencies and other businesses to support secure access, identity verification and digital workflows. The company’s products include authentication tools, such as hardware and software-based security credentials, and OneSpan Sign, an electronic signature solution. OneSpan also offers software and services for managing digital agreements and securing transactions across online and mobile channels.