Comparing Digital Turbine (APPS) and Its Peers

Digital Turbine (NASDAQ:APPS) is one of 953 publicly-traded companies in the “Software” industry, but how does it compare to its peers? We will compare Digital Turbine to similar businesses based on the strength of its analyst recommendations, valuation, risk, institutional ownership, dividends, earnings and profitability.

Risk and Volatility

Digital Turbine has a beta of 3.01, meaning that its stock price is 201% more volatile than the S&P 500. Comparatively, Digital Turbine’s peers have a beta of 1.34, meaning that their average stock price is 34% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Digital Turbine and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Digital Turbine	1	2	6	0	2.56
Digital Turbine Competitors	5748	21527	44880	1497	2.57

Digital Turbine currently has a consensus target price of $15.42, indicating a potential upside of 48.52%. As a group, “Software” companies have a potential upside of 29.57%. Given Digital Turbine’s higher probable upside, equities research analysts clearly believe Digital Turbine is more favorable than its peers.

Insider & Institutional Ownership

63.7% of Digital Turbine shares are held by institutional investors. Comparatively, 41.8% of shares of all “Software” companies are held by institutional investors. 6.0% of Digital Turbine shares are held by company insiders. Comparatively, 19.9% of shares of all “Software” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Digital Turbine and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Digital Turbine	$565.25 million	-$37.73 million	-39.92
Digital Turbine Competitors	$1.92 billion	$387.74 million	108.82

Digital Turbine’s peers have higher revenue and earnings than Digital Turbine. Digital Turbine 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 Digital Turbine and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Digital Turbine	-4.46%	38.34%	8.27%
Digital Turbine Competitors	-607.02%	22.93%	-8.85%

Summary

Digital Turbine beats its peers on 7 of the 13 factors compared.

About Digital Turbine

Digital Turbine, Inc., through its subsidiaries, operates a mobile growth platform for advertisers, publishers, carriers, and device original equipment manufacturers (OEMs). The company operates through two segments, On Device Solutions and App Growth Platform. Its application media platform delivers mobile applications to various publishers, carriers, OEMs, and devices; and content media platform offers news, weather, sports, and other content, as well as programmatic advertising and media content delivery services, and sponsored and editorial content media. The company also provides direct campaign management products, such as the DT DSP and DT Offer Wall; ad monetization solutions allow mobile app publishers and developers to monetize their monthly active users via display, native, and video advertising; brands and agencies runs mobile brand-awareness campaigns on the direct mobile app inventory; and app developers and other performance-focused advertisers execute mobile user acquisition campaigns for their apps and products. It operates in the United States, Canada, Europe, the Middle East, Africa, the Asia Pacific, China, Mexico, Central America, and South America. The company is headquartered in Austin, Texas.