Analyzing ePlus inc. (PLUS) and Its Peers

ePlus inc. (NASDAQ: PLUS) is one of 204 publicly-traded companies in the “IT Services & Consulting” industry, but how does it contrast to its peers? We will compare ePlus inc. to similar companies based on the strength of its dividends, earnings, risk, valuation, profitability, analyst recommendations and institutional ownership.

Earnings and Valuation



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

Gross Revenue NetIncome Price/Earnings Ratio
ePlus inc. $1.33 billion $50.55 million 19.77
ePlus inc. Competitors $3.02 billion $307.47 million 246.42

ePlus inc.’s peers have higher revenue and earnings than ePlus inc.. ePlus inc. 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.

Analyst Recommendations

This is a breakdown of current ratings and target prices for ePlus inc. and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ePlus inc. 0 2 1 0 2.33
ePlus inc. Competitors 731 4785 7649 175 2.54

ePlus inc. currently has a consensus price target of $29.73, indicating a potential downside of 60.99%. As a group, “IT Services & Consulting” companies have a potential upside of 3.20%. Given ePlus inc.’s peers stronger consensus rating and higher probable upside, analysts plainly believe ePlus inc. has less favorable growth aspects than its peers.

Volatility & Risk

ePlus inc. has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500. Comparatively, ePlus inc.’s peers have a beta of 1.13, suggesting that their average stock price is 13% more volatile than the S&P 500.

Profitability

This table compares ePlus inc. and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ePlus inc. 3.85% 15.52% 7.37%
ePlus inc. Competitors -19.90% -427.85% -3.86%

Institutional and Insider Ownership

86.1% of ePlus inc. shares are held by institutional investors. Comparatively, 61.0% of shares of all “IT Services & Consulting” companies are held by institutional investors. 3.3% of ePlus inc. shares are held by insiders. Comparatively, 16.8% of shares of all “IT Services & Consulting” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

ePlus inc. peers beat ePlus inc. on 8 of the 13 factors compared.

ePlus inc. Company Profile

ePlus inc. is a holding company. The Company is engaged in the business of selling, leasing, financing and managing information technology. It operates through two segments: technology and financing. The technology segment sells information technology (IT) hardware products, third-party software and maintenance contracts, its own and third-party professional and managed services, and its software. The financing segment operations primarily consist of the financing of information technology equipment, software and related services. Both segments sell to commercial entities, state and local governments, government contractors and educational institutions. The Company is a provider of IT solutions, which enable organizations to optimize their IT environment and supply chain processes. It delivers and integrates IT products and software from various vendors, and provides private, hybrid, and public cloud solutions.

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