Head-To-Head Contrast: Constellation Software (CNSWF) and The Competition

Constellation Software (OTCMKTS:CNSWF) is one of 953 public companies in the “Software” industry, but how does it weigh in compared to its rivals? We will compare Constellation Software to similar companies based on the strength of its valuation, analyst recommendations, profitability, institutional ownership, risk, dividends and earnings.

Earnings and Valuation

This table compares Constellation Software and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Constellation Software	$11.62 billion	$512.00 million	55.10
Constellation Software Competitors	$1.80 billion	$386.69 million	106.67

Constellation Software has higher revenue and earnings than its rivals. Constellation Software is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Constellation Software and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Constellation Software	7.60%	47.37%	12.80%
Constellation Software Competitors	-612.64%	20.88%	-8.99%

Risk and Volatility

Constellation Software has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, Constellation Software’s rivals have a beta of 1.34, suggesting that their average share price is 34% more volatile than the S&P 500.

Insider & Institutional Ownership

41.8% of shares of all “Software” companies are held by institutional investors. 19.9% of shares of all “Software” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

Constellation Software pays an annual dividend of $4.00 per share and has a dividend yield of 0.2%. Constellation Software pays out 8.8% of its earnings in the form of a dividend. As a group, “Software” companies pay a dividend yield of 1.9% and pay out 48.0% of their earnings in the form of a dividend.

Analyst Ratings

This is a summary of current ratings and price targets for Constellation Software and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Constellation Software	0	1	5	1	3.00
Constellation Software Competitors	5740	21515	44870	1493	2.57

As a group, “Software” companies have a potential upside of 28.85%. Given Constellation Software’s rivals higher probable upside, analysts plainly believe Constellation Software has less favorable growth aspects than its rivals.

Summary

Constellation Software beats its rivals on 9 of the 15 factors compared.

About Constellation Software

Constellation Software Inc., together with its subsidiaries, acquires, builds, and manages vertical market software businesses in Canada, the United States, Europe, and internationally. It provides mission critical software solutions for public and private sector markets. The company is also involved in the software licensing; and sale of third-party hardware. In addition, it offers professional, and maintenance and other recurring services. Constellation Software Inc. was incorporated in 1995 and is headquartered in Toronto, Canada.