Reviewing Docusign (NASDAQ:DOCU) & Its Peers

Docusign (NASDAQ: DOCU) is one of 197 publicly-traded companies in the “Prepackaged software” industry, but how does it weigh in compared to its competitors? We will compare Docusign to related companies based on the strength of its dividends, risk, valuation, institutional ownership, analyst recommendations, earnings and profitability.

Profitability

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

Net Margins Return on Equity Return on Assets
Docusign -60.84% -86.06% -30.84%
Docusign Competitors -39.03% -24.47% -3.64%

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Docusign $700.97 million -$426.46 million -18.20
Docusign Competitors $1.91 billion $226.94 million 38.08

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

Insider & Institutional Ownership

53.3% of Docusign shares are owned by institutional investors. Comparatively, 60.0% of shares of all “Prepackaged software” companies are owned by institutional investors. 21.2% of shares of all “Prepackaged software” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Docusign and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Docusign 0 4 8 0 2.67
Docusign Competitors 1696 7949 14602 728 2.58

Docusign currently has a consensus target price of $61.55, suggesting a potential upside of 16.59%. As a group, “Prepackaged software” companies have a potential upside of 5.16%. Given Docusign’s stronger consensus rating and higher possible upside, research analysts clearly believe Docusign is more favorable than its competitors.

Summary

Docusign competitors beat Docusign on 9 of the 12 factors compared.

Docusign Company Profile

DocuSign, Inc. provides cloud based transaction products and services in the United States. The company offers e-signature solution that enables businesses to digitally prepare, execute, and act on agreements. It serves large enterprises, sole proprietorships, small- to medium-sized businesses, professionals, and individuals. The company was 2003 and is headquartered in San Francisco, California.

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