Docusign (DOCU) and Its Rivals Head to Head Review

Docusign (NASDAQ: DOCU) is one of 198 publicly-traded companies in the “Prepackaged software” industry, but how does it compare to its competitors? We will compare Docusign to similar businesses based on the strength of its earnings, analyst recommendations, institutional ownership, valuation, risk, dividends 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 -39.24% -19.32% -3.66%

Institutional and Insider Ownership

53.6% of Docusign shares are owned by institutional investors. Comparatively, 59.7% of shares of all “Prepackaged software” companies are owned by institutional investors. 20.9% 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 company will outperform the market over the long term.

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 -19.47
Docusign Competitors $1.91 billion $226.36 million 37.41

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.

Analyst Ratings

This is a summary of current ratings for Docusign and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Docusign 0 4 8 0 2.67
Docusign Competitors 1716 8031 14771 748 2.58

Docusign presently has a consensus price target of $61.55, suggesting a potential upside of 9.01%. As a group, “Prepackaged software” companies have a potential upside of 1.59%. Given Docusign’s stronger consensus rating and higher possible upside, equities analysts plainly 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 software in the United States. The company offers e-signature solution that enables businesses to digitally prepare, execute, and act on agreements. The company sells its products through direct, partner-assisted, and Web-based sales. It serves enterprise businesses, commercial businesses, and small businesses, such as professionals, sole proprietorships and individuals. The company was 2003 and is headquartered in San Francisco, California.

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