New Relic (NEWR) vs. Its Peers Head to Head Review

New Relic (NYSE: NEWR) is one of 68 publicly-traded companies in the “Application Software” industry, but how does it weigh in compared to its rivals? We will compare New Relic to similar companies based on the strength of its analyst recommendations, dividends, valuation, risk, earnings, profitability and institutional ownership.

Risk & Volatility

New Relic has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500. Comparatively, New Relic’s rivals have a beta of 1.14, indicating that their average share price is 14% more volatile than the S&P 500.

Profitability

This table compares New Relic and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
New Relic -19.43% -29.19% -16.09%
New Relic Competitors -67.65% -110.30% -18.08%

Earnings & Valuation

This table compares New Relic and its rivals revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
New Relic $263.48 million -$61.07 million -47.40
New Relic Competitors $954.67 million $64.66 million 461.79

New Relic’s rivals have higher revenue and earnings than New Relic. New Relic is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for New Relic and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
New Relic 0 2 11 0 2.85
New Relic Competitors 190 1573 2970 98 2.62

New Relic presently has a consensus price target of $52.75, indicating a potential downside of 0.64%. As a group, “Application Software” companies have a potential upside of 9.98%. Given New Relic’s rivals higher probable upside, analysts clearly believe New Relic has less favorable growth aspects than its rivals.

Insider & Institutional Ownership

73.5% of New Relic shares are owned by institutional investors. Comparatively, 68.5% of shares of all “Application Software” companies are owned by institutional investors. 23.1% of New Relic shares are owned by company insiders. Comparatively, 15.6% of shares of all “Application Software” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

New Relic beats its rivals on 7 of the 12 factors compared.

New Relic Company Profile

New Relic, Inc. (New Relic) is a provider of enterprise software. The Company’s cloud-based platform and range of products enable organizations to collect, store and analyze software data in real time. The Company’s New Relic Software Analytics Cloud consists of an integrated suite of products, a data database and an open platform. New Relic offers an integrated suite of products, namely, New Relic APM, for application performance management; New Relic Mobile, for mobile application performance management; New Relic Servers, for server monitoring for cloud and data centers; New Relic Browser, for end user experience monitoring and performance monitoring; New Relic Synthetics, for software testing through simulated usage; New Relic Plugins, plugins to extend its functionality into other applications; New Relic Alerts, for policy management and delivering alerts across entire suite of products, and New Relic Insights, for real-time big data analytics for business managers.

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