PTC (NASDAQ:PTC) & Its Rivals Critical Contrast

PTC (NASDAQ: PTC) is one of 65 public companies in the “Application Software” industry, but how does it weigh in compared to its rivals? We will compare PTC to related companies based on the strength of its analyst recommendations, dividends, earnings, valuation, risk, profitability and institutional ownership.

Volatility & Risk

PTC has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500. Comparatively, PTC’s rivals have a beta of 1.61, suggesting that their average share price is 61% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for PTC and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PTC 0 3 14 0 2.82
PTC Competitors 181 1517 2906 98 2.62

PTC presently has a consensus price target of $65.38, indicating a potential upside of 1.07%. As a group, “Application Software” companies have a potential downside of 1.00%. Given PTC’s stronger consensus rating and higher possible upside, equities research analysts clearly believe PTC is more favorable than its rivals.

Institutional and Insider Ownership

97.5% of PTC shares are held by institutional investors. Comparatively, 68.6% of shares of all “Application Software” companies are held by institutional investors. 1.1% of PTC shares are held by insiders. Comparatively, 15.7% of shares of all “Application Software” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
PTC 0.54% 8.20% 3.01%
PTC Competitors -65.89% -93.35% -17.71%

Earnings and Valuation

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

Gross Revenue EBITDA Price/Earnings Ratio
PTC $1.15 billion $91.94 million 1,293.86
PTC Competitors $761.46 million $137.65 million 35.04

PTC has higher revenue, but lower earnings than its rivals. PTC is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

PTC beats its rivals on 9 of the 13 factors compared.

PTC Company Profile

PTC Inc. is a global computer software and services company. The Company offers a portfolio of computer-aided design (CAD) modeling, product lifecycle management (PLM) and service lifecycle management (SLM) solutions for manufacturers to create, operate, and service products. It offers a suite of Internet of Things (IoT) solutions that enables its customers to connect, manage and analyze data, and create applications. Its segments include the Solutions Group, the IoT Group and Professional Services. The Solutions Group segment includes its CAD, PLM and SLM products. The IoT Group segment includes its IoT, analytics and augmented reality (AR) solutions. The Professional Services segment includes consulting, implementation and training business. Its IoT products include ThingWorx, KEPServerEX, Vuforia Studio and Vuforia. Its CAD products include Creo and Mathcad. Its PLM products include Windchill, Integrity, Navigate and Creo View. Its SLM products include Servigistics and Arbortext.

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