Contrasting Elastic (ESTC) & Its Peers

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

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Elastic	$1.74 billion	$367.77 million	24.48
Elastic Competitors	$1.90 billion	$383.57 million	112.39

Elastic’s rivals have higher revenue and earnings than Elastic. Elastic 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 Ratings

This is a breakdown of current ratings and recommmendations for Elastic and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Elastic	0	13	17	0	2.57
Elastic Competitors	5835	21607	44998	1500	2.57

Elastic presently has a consensus target price of $98.56, suggesting a potential upside of 12.76%. As a group, “Software” companies have a potential upside of 28.12%. Given Elastic’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Elastic has less favorable growth aspects than its rivals.

Insider & Institutional Ownership

97.0% of Elastic shares are owned by institutional investors. Comparatively, 41.5% of shares of all “Software” companies are owned by institutional investors. 12.7% of Elastic shares are owned by company insiders. Comparatively, 19.9% of shares of all “Software” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Elastic and its rivals’ 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	-599.26%	26.08%	-8.90%

Risk & Volatility

Elastic has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500. Comparatively, Elastic’s rivals have a beta of 1.35, meaning that their average stock price is 35% more volatile than the S&P 500.

Summary

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

About Elastic

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.