Switch (SWCH) and Its Rivals Financial Survey

Switch (NYSE: SWCH) is one of 51 publicly-traded companies in the “Computer programming, data processing, & other computer related” industry, but how does it contrast to its peers? We will compare Switch to similar companies based on the strength of its institutional ownership, profitability, earnings, analyst recommendations, risk, valuation and dividends.

Analyst Ratings

This is a summary of recent recommendations for Switch and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Switch 0 5 7 0 2.58
Switch Competitors 710 2520 5501 278 2.59



Switch currently has a consensus price target of $14.00, suggesting a potential upside of 31.09%. As a group, “Computer programming, data processing, & other computer related” companies have a potential upside of 87.18%. Given Switch’s peers stronger consensus rating and higher probable upside, analysts clearly believe Switch has less favorable growth aspects than its peers.

Dividends

Switch pays an annual dividend of $0.12 per share and has a dividend yield of 1.1%. Switch pays out 133.3% 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, “Computer programming, data processing, & other computer related” companies pay a dividend yield of 1.1% and pay out 31.2% of their earnings in the form of a dividend.

Institutional and Insider Ownership

19.0% of Switch shares are owned by institutional investors. Comparatively, 47.6% of shares of all “Computer programming, data processing, & other computer related” companies are owned by institutional investors. 12.6% of Switch shares are owned by company insiders. Comparatively, 14.1% of shares of all “Computer programming, data processing, & other computer related” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

Switch has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500. Comparatively, Switch’s peers have a beta of 1.43, meaning that their average stock price is 43% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Switch 1.00% 0.56% 0.28%
Switch Competitors -5.35% -8.06% -1.78%

Valuation and Earnings

This table compares Switch and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Switch $405.86 million $4.05 million 118.67
Switch Competitors $7.97 billion $1.87 billion 12.54

Switch’s peers have higher revenue and earnings than Switch. Switch 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.

Summary

Switch peers beat Switch on 10 of the 15 factors compared.

Switch Company Profile

Switch, Inc., through its subsidiary, Switch, Ltd., provides colocation space and related services primarily to technology and digital media companies in the United States. It develops and operates data centers in Nevada and Michigan. The company also serves cloud and managed service providers, financial institutions, IT and software providers, government agencies, network and telecommunications providers, and others that conduct critical business on the Internet. Switch, Inc. was founded in 2000 and is headquartered in Las Vegas, Nevada.

Receive News & Ratings for Switch Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Switch and related companies with MarketBeat.com's FREE daily email newsletter.