Financial Survey: Hortonworks (NASDAQ:HDP) versus Its Competitors

Hortonworks (NASDAQ: HDP) is one of 107 public companies in the “Enterprise Software” industry, but how does it compare to its competitors? We will compare Hortonworks to similar companies based on the strength of its institutional ownership, earnings, dividends, risk, valuation, profitability and analyst recommendations.

Insider and Institutional Ownership

50.1% of Hortonworks shares are held by institutional investors. Comparatively, 59.1% of shares of all “Enterprise Software” companies are held by institutional investors. 22.5% of Hortonworks shares are held by company insiders. Comparatively, 23.5% of shares of all “Enterprise Software” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings for Hortonworks and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hortonworks 0 3 11 0 2.79
Hortonworks Competitors 370 2205 4127 118 2.59

Hortonworks presently has a consensus price target of $20.42, suggesting a potential upside of 11.93%. As a group, “Enterprise Software” companies have a potential downside of 0.12%. Given Hortonworks’ stronger consensus rating and higher possible upside, equities analysts plainly believe Hortonworks is more favorable than its competitors.

Risk and Volatility

Hortonworks has a beta of 1.58, meaning that its stock price is 58% more volatile than the S&P 500. Comparatively, Hortonworks’ competitors have a beta of 1.10, meaning that their average stock price is 10% more volatile than the S&P 500.

Valuation and Earnings

This table compares Hortonworks and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Hortonworks $184.46 million -$251.68 million -5.41
Hortonworks Competitors $1.82 billion $300.70 million 40.52

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

Profitability

This table compares Hortonworks and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hortonworks -89.35% -765.37% -94.91%
Hortonworks Competitors -25.37% -205.72% -7.90%

Summary

Hortonworks competitors beat Hortonworks on 8 of the 12 factors compared.

About Hortonworks

Hortonworks, Inc. is a provider and distributor of enterprise-scale data management software platforms. The Company’s product offerings include Hortonworks Data Platform (HDP), Hortonworks Sandbox and Hortonworks DataFlow Platform (HDF). It provides support subscription offerings and related professional services for its enterprise-scale Connected Data Platforms, such as HDP and HDF. Its Data at Rest solution, the HDP, is an enterprise-scale data management platform built entirely on open source software, including Apache Hadoop. HDP combines computer servers with local storage and open source software technology to create a distributed compute and storage platform for data sets that is secure and scalable over petabytes of data within thousands of servers or nodes. Its Data in Motion solution, the HDF, is an enterprise-scale data ingest platform built entirely on open source software, including Apache NiFi.

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