Critical Comparison: RPX (RPXC) versus Its Rivals

RPX (NASDAQ: RPXC) is one of 24 publicly-traded companies in the “Patent owners & lessors” industry, but how does it compare to its competitors? We will compare RPX to related businesses based on the strength of its institutional ownership, risk, valuation, earnings, profitability, dividends and analyst recommendations.

Earnings & Valuation

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This table compares RPX and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
RPX $330.46 million -$79.14 million N/A
RPX Competitors $172.04 million $8.49 million 5.53

RPX has higher revenue, but lower earnings than its competitors.

Insider & Institutional Ownership

89.8% of RPX shares are owned by institutional investors. Comparatively, 35.5% of shares of all “Patent owners & lessors” companies are owned by institutional investors. 3.5% of RPX shares are owned by company insiders. Comparatively, 19.5% of shares of all “Patent owners & lessors” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

RPX pays an annual dividend of $0.10 per share and has a dividend yield of 0.9%. As a group, “Patent owners & lessors” companies pay a dividend yield of 2.0% and pay out 31.5% of their earnings in the form of a dividend.

Volatility and Risk

RPX has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500. Comparatively, RPX’s competitors have a beta of 1.82, suggesting that their average share price is 82% more volatile than the S&P 500.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RPX 1 1 1 0 2.00
RPX Competitors 70 278 572 9 2.56

RPX currently has a consensus price target of $14.33, suggesting a potential upside of 29.25%. As a group, “Patent owners & lessors” companies have a potential upside of 13.71%. Given RPX’s higher probable upside, research analysts clearly believe RPX is more favorable than its competitors.

Profitability

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

Net Margins Return on Equity Return on Assets
RPX -23.95% 6.17% 4.24%
RPX Competitors -139.67% -94.16% -61.27%

Summary

RPX beats its competitors on 8 of the 15 factors compared.

RPX Company Profile

RPX Corporation is engaged in providing an alternative to litigation through its patent risk management services. The Company helps companies reduce patent litigation risk and corporate legal expense through two primary service offerings: patent risk management services and discovery services. It operates through two segments: patent risk management and discovery services. Its patent risk management segment generates its revenues from membership subscriptions, premiums earned from insurance policies, and management fees for marketing, underwriting, and claim management. Its discovery services segment generates its revenues from fees generated for data collection, hosting and processing, project management, and document review services. The Company serves clients in a range of industries, including consumer electronics, personal computers, e-commerce, financial services, software, media content and distribution, mobile communications and handsets, networking and semiconductors.

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