Financial Review: Elastic (ESTC) vs. The Competition

Elastic (NYSE: ESTC) is one of 199 public companies in the “Prepackaged software” industry, but how does it weigh in compared to its rivals? We will compare Elastic to similar companies based on the strength of its earnings, institutional ownership, dividends, valuation, analyst recommendations, profitability and risk.

Profitability

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

Net Margins Return on Equity Return on Assets
Elastic N/A N/A N/A
Elastic Competitors -12.41% -45.64% -6.73%



Earnings and Valuation

This table compares Elastic and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Elastic $271.65 million -$102.30 million -44.30
Elastic Competitors $1.96 billion $223.83 million 31.92

Elastic’s rivals have higher revenue and earnings than Elastic. Elastic 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.

Insider and Institutional Ownership

46.5% of Elastic shares are held by institutional investors. Comparatively, 60.4% of shares of all “Prepackaged software” companies are held by institutional investors. 51.8% of Elastic shares are held by insiders. Comparatively, 20.0% of shares of all “Prepackaged software” 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.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Elastic and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Elastic 0 7 6 0 2.46
Elastic Competitors 1768 8258 15062 766 2.57

Elastic presently has a consensus price target of $93.92, indicating a potential upside of 17.78%. As a group, “Prepackaged software” companies have a potential upside of 5.51%. Given Elastic’s higher possible upside, equities research analysts plainly believe Elastic is more favorable than its rivals.

Summary

Elastic rivals beat Elastic on 7 of the 12 factors compared.

About Elastic

Elastic N.V. develops and delivers technology that enables users to search structured and unstructured data for a range of consumer and enterprise applications. It primarily provides Elastic Stack, a set of software products that ingest and store data from various sources and formats, as well as performs search, analysis, and visualization. Its Elastic Stack comprises products, such as Elasticsearch, a distributed, real-time search and analytics engine, and data store for various types of data, including textual, numerical, geospatial, structured, and unstructured; Kibana, a user interface, management, and configuration interface for the Elastic Stack; Beats, a single-purpose data shippers for sending data from edge machines to Elasticsearch or Logstash; and Logstash, a data processing pipeline for ingesting data into Elasticsearch or other storage systems. The company also offers software solutions on the Elastic Stack that address cases, including app search, site search, enterprise search, logging, metrics, application performance monitoring, business analytics, and security analytics. Its products are used by individual developers and organizations of a range of industries. The company was founded in 2012 and is headquartered in Mountain View, California.

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