Monotype Imaging (NASDAQ:TYPE) vs. Its Peers Head to Head Survey

Monotype Imaging (NASDAQ: TYPE) is one of 36 publicly-traded companies in the “Custom computer programming services” industry, but how does it contrast to its rivals? We will compare Monotype Imaging to related businesses based on the strength of its risk, dividends, earnings, valuation, institutional ownership, analyst recommendations and profitability.

Dividends

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Monotype Imaging pays an annual dividend of $0.46 per share and has a dividend yield of 2.1%. Monotype Imaging pays out 86.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Custom computer programming services” companies pay a dividend yield of 1.4% and pay out 29.4% of their earnings in the form of a dividend.

Insider and Institutional Ownership

93.4% of Monotype Imaging shares are owned by institutional investors. Comparatively, 55.3% of shares of all “Custom computer programming services” companies are owned by institutional investors. 2.3% of Monotype Imaging shares are owned by company insiders. Comparatively, 14.6% of shares of all “Custom computer programming services” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Monotype Imaging 4.90% 6.10% 3.73%
Monotype Imaging Competitors 2.29% -16.86% 5.30%

Earnings & Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Monotype Imaging $235.79 million $11.56 million 42.17
Monotype Imaging Competitors $1.99 billion $183.98 million -1.10

Monotype Imaging’s rivals have higher revenue and earnings than Monotype Imaging. Monotype Imaging 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.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Monotype Imaging and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Monotype Imaging 1 0 1 0 2.00
Monotype Imaging Competitors 166 779 1469 50 2.57

Monotype Imaging currently has a consensus target price of $27.50, indicating a potential upside of 23.04%. As a group, “Custom computer programming services” companies have a potential upside of 43.53%. Given Monotype Imaging’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Monotype Imaging has less favorable growth aspects than its rivals.

Risk and Volatility

Monotype Imaging has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500. Comparatively, Monotype Imaging’s rivals have a beta of 1.00, suggesting that their average share price is 0% more volatile than the S&P 500.

Summary

Monotype Imaging rivals beat Monotype Imaging on 10 of the 15 factors compared.

About Monotype Imaging

Monotype Imaging Holdings Inc. is engaged in the development, marketing and licensing of technologies and fonts. The Company empowers expression and engagement for creatives, designers, engineers and marketers. It organizes its business operations into two areas: creative professionals and original equipment manufacturer (OEM). For Creative Professional market, it provides content across multiple devices and mediums. Its solutions, which include type, branded mobile content, visual content marketing solutions, custom design services, and tools and technologies that enable the creative process, are licensed through its direct sales channel, e-commerce platforms and partner platforms. It also provides consumer device manufacturers and independent software vendors with the right solutions for delivering consistent, compelling user experiences. It works with a range of customers, including brands, agencies and publishers. As of December 31, 2016, it offered over 17,000 typeface designs.

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