Analyzing Intuit (INTU) and The Competition

Intuit (NASDAQ: INTU) is one of 103 publicly-traded companies in the “Enterprise Software” industry, but how does it compare to its peers? We will compare Intuit to similar companies based on the strength of its analyst recommendations, dividends, valuation, risk, earnings, institutional ownership and profitability.

Valuation & Earnings

This table compares Intuit and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Intuit $5.18 billion $971.00 million 40.88
Intuit Competitors $1.76 billion $288.64 million 15.36

Intuit has higher revenue and earnings than its peers. Intuit is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

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

Net Margins Return on Equity Return on Assets
Intuit 18.62% 77.56% 22.36%
Intuit Competitors -22.31% -213.12% -7.21%

Institutional & Insider Ownership

86.3% of Intuit shares are owned by institutional investors. Comparatively, 61.0% of shares of all “Enterprise Software” companies are owned by institutional investors. 5.6% of Intuit shares are owned by company insiders. Comparatively, 22.2% of shares of all “Enterprise Software” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk and Volatility

Intuit has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500. Comparatively, Intuit’s peers have a beta of 1.06, suggesting that their average stock price is 6% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Intuit and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Intuit 2 5 12 0 2.53
Intuit Competitors 374 2210 4142 120 2.59

Intuit currently has a consensus price target of $152.65, suggesting a potential downside of 1.22%. As a group, “Enterprise Software” companies have a potential upside of 2.92%. Given Intuit’s peers stronger consensus rating and higher possible upside, analysts clearly believe Intuit has less favorable growth aspects than its peers.

Dividends

Intuit pays an annual dividend of $1.56 per share and has a dividend yield of 1.0%. Intuit pays out 41.3% of its earnings in the form of a dividend. As a group, “Enterprise Software” companies pay a dividend yield of 0.8% and pay out 32.2% of their earnings in the form of a dividend.

Summary

Intuit beats its peers on 10 of the 15 factors compared.

Intuit Company Profile

Intuit Inc. is a provider of business and financial management solutions for small businesses, consumers and accounting professionals. The Company operates through three segments: Small Business, Consumer Tax and ProConnect. The Small Business segment serves and advises small businesses and the accounting professionals, and includes QuickBooks financial and business management online services and desktop software, payroll solutions, and payment processing solutions. The Small Business segment also includes third-party applications that integrate with the Company’s offerings. The Consumer Tax segment targets consumers and includes TurboTax products and services, which enable individuals to prepare and file their own federal and state personal income tax returns. The ProConnect segment targets professional accountants in the United States and Canada. Its ProConnect professional tax offerings include Lacerte, ProSeries, ProFile and ProConnect Tax Online.

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