Head to Head Review: Solera (SLH) vs. Its Competitors

Solera (NYSE: SLH) is one of 108 publicly-traded companies in the “Software” industry, but how does it compare to its competitors? We will compare Solera to related companies based on the strength of its earnings, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.

Analyst Ratings

This is a summary of current ratings and price targets for Solera and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Solera 0 0 0 0 N/A
Solera Competitors 299 2128 4509 91 2.63

As a group, “Software” companies have a potential upside of 11.04%. Given Solera’s competitors higher possible upside, analysts plainly believe Solera has less favorable growth aspects than its competitors.

Volatility & Risk

Solera has a beta of 0.26, meaning that its share price is 74% less volatile than the S&P 500. Comparatively, Solera’s competitors have a beta of 0.95, meaning that their average share price is 5% less volatile than the S&P 500.

Dividends

Solera pays an annual dividend of $0.90 per share and has a dividend yield of 1.6%. Solera pays out -45.5% of its earnings in the form of a dividend. As a group, “Software” companies pay a dividend yield of 1.1% and pay out 89.9% of their earnings in the form of a dividend. Solera has increased its dividend for 7 consecutive years. Solera is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Profitability

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

Net Margins Return on Equity Return on Assets
Solera 18.15% N/A 6.01%
Solera Competitors -58.79% -27.16% -8.57%

Institutional and Insider Ownership

57.6% of shares of all “Software” companies are owned by institutional investors. 17.8% of shares of all “Software” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Solera N/A N/A -28.20
Solera Competitors $2.20 billion $401.02 million 449.04

Solera’s competitors have higher revenue and earnings than Solera. Solera 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.

Summary

Solera competitors beat Solera on 6 of the 11 factors compared.

Solera Company Profile

Solera Holdings, Inc. is a United States-based company, which is a provider of risk and asset management software and services to the automotive and property marketplace, including the global property and casualty (P&C) insurance industry. The Company is engaged in cognitive technologies for the automotive and home ownership ecosystems. The Company’s solutions and services bring together consumers, insurers, banks, governments, manufacturers, owners, wholesalers, retailers, and service and repair industries, into digitally unified ecosystems that enable the management, protection and security of assets throughout their lifecycles. The Company’s product platforms include Audatex, AutoPoint, CAP/HPI, Digidentity, Explore Data, Hollander, Identifix, Inpart and TitleTec, as well as the company’s application, Digital Garage. The Company processes over 240 million transactions annually for approximately 200,000 partners in approximately 80 countries.

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