Comparing New Relic (NEWR) and Its Rivals

New Relic (NYSE: NEWR) is one of 61 publicly-traded companies in the “Application Software” industry, but how does it weigh in compared to its peers? We will compare New Relic to related companies based on the strength of its institutional ownership, valuation, earnings, analyst recommendations, dividends, risk and profitability.

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
New Relic $263.48 million -$61.07 million -50.10
New Relic Competitors $916.05 million $45.64 million 586.37

New Relic’s peers have higher revenue and earnings than New Relic. New Relic 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.

Risk & Volatility

New Relic has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500. Comparatively, New Relic’s peers have a beta of -0.17, meaning that their average share price is 117% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for New Relic and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
New Relic 0 2 9 0 2.82
New Relic Competitors 178 1506 2849 90 2.62

New Relic presently has a consensus price target of $53.40, suggesting a potential downside of 4.83%. As a group, “Application Software” companies have a potential upside of 16.31%. Given New Relic’s peers higher possible upside, analysts clearly believe New Relic has less favorable growth aspects than its peers.

Profitability

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

Net Margins Return on Equity Return on Assets
New Relic -19.43% -29.19% -16.09%
New Relic Competitors -26.01% -105.96% -13.72%

Insider and Institutional Ownership

77.2% of New Relic shares are owned by institutional investors. Comparatively, 70.5% of shares of all “Application Software” companies are owned by institutional investors. 23.1% of New Relic shares are owned by company insiders. Comparatively, 15.4% of shares of all “Application Software” companies are owned by company 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.

Summary

New Relic beats its peers on 7 of the 12 factors compared.

About New Relic

New Relic, Inc. (New Relic) is a provider of enterprise software. The Company’s cloud-based platform and range of products enable organizations to collect, store and analyze software data in real time. The Company’s New Relic Software Analytics Cloud consists of an integrated suite of products, a data database and an open platform. New Relic offers an integrated suite of products, namely, New Relic APM, for application performance management; New Relic Mobile, for mobile application performance management; New Relic Servers, for server monitoring for cloud and data centers; New Relic Browser, for end user experience monitoring and performance monitoring; New Relic Synthetics, for software testing through simulated usage; New Relic Plugins, plugins to extend its functionality into other applications; New Relic Alerts, for policy management and delivering alerts across entire suite of products, and New Relic Insights, for real-time big data analytics for business managers.

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