Comparing Zuora (NYSE:ZUO) and Its Peers

Zuora (NYSE: ZUO) is one of 198 public companies in the “Prepackaged software” industry, but how does it weigh in compared to its peers? We will compare Zuora to related businesses based on the strength of its earnings, analyst recommendations, valuation, profitability, dividends, institutional ownership and risk.

Insider & Institutional Ownership

32.6% of Zuora shares are held by institutional investors. Comparatively, 59.3% of shares of all “Prepackaged software” companies are held by institutional investors. 20.6% of shares of all “Prepackaged software” companies are held by company 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 summary of recent ratings for Zuora and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zuora 1 1 3 1 2.67
Zuora Competitors 1726 8065 14836 753 2.58

Zuora currently has a consensus price target of $27.00, suggesting a potential upside of 20.27%. As a group, “Prepackaged software” companies have a potential upside of 4.22%. Given Zuora’s stronger consensus rating and higher probable upside, analysts clearly believe Zuora is more favorable than its peers.

Profitability

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

Net Margins Return on Equity Return on Assets
Zuora -32.99% -46.98% -25.38%
Zuora Competitors -39.32% -18.94% -3.73%

Earnings & Valuation

This table compares Zuora and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Zuora $235.20 million -$77.59 million -27.38
Zuora Competitors $1.91 billion $226.71 million 35.79

Zuora’s peers have higher revenue and earnings than Zuora. Zuora 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

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

About Zuora

Zuora, Inc. provides cloud-based software on a subscription basis that enables companies in various industries to launch, manage, and transform into a subscription business. The company offers Zuora Central platform that acts as an intelligent subscription management hub that automates the subscription order-to-cash process, including quoting, billing, collections, analytics, and revenue recognition. Its products include Zuora Billing, Zuora RevPro, Zuora CPQ, Zuora Insights, and Zuora Collect. Zuora, Inc. sells its products through its direct sales force and with GSI partners to various industries comprising software, hardware, media, transportation, construction, healthcare, education, retail, Internet of Things, and others worldwide. The company was incorporated in 2006 and is headquartered in San Mateo, California.

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