Contrasting Mitek Systems (MITK) & Its Rivals

Mitek Systems (NASDAQ: MITK) is one of 22 publicly-traded companies in the “Computer peripheral equipment, not elsewhere classified” industry, but how does it compare to its peers? We will compare Mitek Systems to related companies based on the strength of its institutional ownership, profitability, risk, valuation, analyst recommendations, earnings and dividends.

Risk and Volatility

Mitek Systems has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500. Comparatively, Mitek Systems’ peers have a beta of 0.61, suggesting that their average stock price is 39% less volatile than the S&P 500.



Profitability

This table compares Mitek Systems and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mitek Systems 18.57% 9.45% 7.83%
Mitek Systems Competitors -12.14% -13.08% -2.61%

Analyst Ratings

This is a summary of current recommendations for Mitek Systems and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mitek Systems 0 0 4 0 3.00
Mitek Systems Competitors 136 732 1393 49 2.59

Mitek Systems presently has a consensus target price of $12.25, indicating a potential upside of 63.33%. As a group, “Computer peripheral equipment, not elsewhere classified” companies have a potential upside of 7.75%. Given Mitek Systems’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Mitek Systems is more favorable than its peers.

Earnings and Valuation

This table compares Mitek Systems and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Mitek Systems $45.39 million $14.09 million 35.71
Mitek Systems Competitors $1.45 billion $9.02 million 19.76

Mitek Systems’ peers have higher revenue, but lower earnings than Mitek Systems. Mitek Systems is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

46.6% of Mitek Systems shares are held by institutional investors. Comparatively, 51.0% of shares of all “Computer peripheral equipment, not elsewhere classified” companies are held by institutional investors. 8.5% of Mitek Systems shares are held by insiders. Comparatively, 16.0% of shares of all “Computer peripheral equipment, not elsewhere classified” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Mitek Systems beats its peers on 8 of the 13 factors compared.

About Mitek Systems

Mitek Systems, Inc. develops, markets and sells mobile capture and identity verification software solutions for enterprise customers. The Company’s technology allows users to remotely deposit checks, open accounts, get insurance quotes, pay bills, as well as verify their identity by taking pictures of various documents with their camera-equipped smartphones and tablets instead of using the device keyboard. Its technology uses algorithms to correct image distortion, extract relevant data, route images to their desired location and process transactions. Its technology processes images of documents in various ways. The Company’s products include Mobile Verify, Mobile Fill, Mobile Docs, Mobile Deposit and Commercial Mobile Deposit Capture. Its mobile technology solutions are provided in two parts: a software development kit (SDK) for mobile capture, and a software platform for image correction, detection, extraction and authentication.

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