Reviewing Snowflake (SNOW) & Its Competitors

Snowflake (NYSE: SNOW) is one of 318 public companies in the “Prepackaged software” industry, but how does it compare to its peers? We will compare Snowflake to related companies based on the strength of its earnings, valuation, dividends, institutional ownership, profitability, risk and analyst recommendations.

Institutional and Insider Ownership

61.2% of Snowflake shares are owned by institutional investors. Comparatively, 59.7% of shares of all “Prepackaged software” companies are owned by institutional investors. 17.8% of shares of all “Prepackaged software” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Snowflake N/A N/A N/A
Snowflake Competitors -39.81% -62.75% -3.61%

Analyst Ratings

This is a summary of current ratings and target prices for Snowflake and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Snowflake 2 14 12 0 2.36
Snowflake Competitors 2160 11320 21162 607 2.57

Snowflake presently has a consensus price target of $278.96, suggesting a potential upside of 12.12%. As a group, “Prepackaged software” companies have a potential upside of 13.35%. Given Snowflake’s peers stronger consensus rating and higher possible upside, analysts clearly believe Snowflake has less favorable growth aspects than its peers.

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Snowflake $592.05 million -$539.10 million -65.47
Snowflake Competitors $1.90 billion $320.23 million 52.79

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

Summary

Snowflake peers beat Snowflake on 8 of the 12 factors compared.

Snowflake Company Profile

Snowflake Inc. provides cloud-based data platform in the United States and internationally. The company's platform offers Data Cloud, an ecosystem that enables customers to consolidate data into a single source of truth to drive meaningful business insights, build data-driven applications, and share data. Its platform is used by various organizations of various sizes in a range of industries. The company was formerly known as Snowflake Computing, Inc. and changed its name to Snowflake Inc. in April 2019. Snowflake Inc. was incorporated in 2012 and is headquartered in San Mateo, California.

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