Head-To-Head Comparison: Elastic (ESTC) and The Competition

Elastic (NYSE:ESTC) is one of 959 public companies in the “Software” industry, but how does it weigh in compared to its competitors? We will compare Elastic to similar companies based on the strength of its analyst recommendations, institutional ownership, dividends, earnings, valuation, profitability and risk.

Volatility and Risk

Elastic has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500. Comparatively, Elastic’s competitors have a beta of 1.35, indicating that their average stock price is 35% more volatile than the S&P 500.

Valuation & Earnings

This table compares Elastic and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Elastic	$1.74 billion	$367.77 million	24.48
Elastic Competitors	$1.90 billion	$383.57 million	112.39

Elastic’s competitors have higher revenue and earnings than Elastic. Elastic is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of recent ratings and price targets for Elastic and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Elastic	0	13	17	0	2.57
Elastic Competitors	5835	21607	44998	1500	2.57

Elastic presently has a consensus price target of $98.56, suggesting a potential upside of 12.76%. As a group, “Software” companies have a potential upside of 28.12%. Given Elastic’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Elastic has less favorable growth aspects than its competitors.

Insider & Institutional Ownership

97.0% of Elastic shares are held by institutional investors. Comparatively, 41.5% of shares of all “Software” companies are held by institutional investors. 12.7% of Elastic shares are held by company insiders. Comparatively, 19.9% of shares of all “Software” companies are held 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Elastic	20.84%	-0.35%	-0.14%
Elastic Competitors	-599.26%	26.08%	-8.90%

Summary

Elastic competitors beat Elastic on 10 of the 13 factors compared.

About Elastic

Elastic N.V. develops software for search, observability and security. Its products help organizations search and analyze data, monitor applications and infrastructure, and detect and respond to cybersecurity threats. The company’s offerings include the Elastic Stack—built around Elasticsearch and including Kibana, Logstash and Beats—as well as cloud-based services through Elastic Cloud. These tools can be used to work with data from a range of sources and support applications such as enterprise search, log analytics and security monitoring.