Comparing Instructure (INST) & Its Peers

Instructure (NYSE: INST) is one of 97 publicly-traded companies in the “Enterprise Software” industry, but how does it compare to its peers? We will compare Instructure to similar businesses based on the strength of its risk, dividends, valuation, earnings, analyst recommendations, profitability and institutional ownership.

Institutional and Insider Ownership

78.3% of Instructure shares are held by institutional investors. Comparatively, 59.2% of shares of all “Enterprise Software” companies are held by institutional investors. 62.5% of Instructure shares are held by company insiders. Comparatively, 23.4% of shares of all “Enterprise Software” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

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

Gross Revenue EBITDA Price/Earnings Ratio
Instructure $133.71 million -$47.35 million -19.11
Instructure Competitors $1.27 billion $348.15 million 37.17

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Instructure and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Instructure 0 0 6 1 3.14
Instructure Competitors 343 2042 3881 107 2.59

Instructure presently has a consensus price target of $36.14, indicating a potential upside of 5.68%. As a group, “Enterprise Software” companies have a potential upside of 2.67%. Given Instructure’s stronger consensus rating and higher possible upside, equities analysts plainly believe Instructure is more favorable than its peers.

Profitability

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

Net Margins Return on Equity Return on Assets
Instructure -38.12% -827.22% -45.34%
Instructure Competitors -25.35% -213.04% -8.27%

Volatility & Risk

Instructure has a beta of 1.89, suggesting that its share price is 89% more volatile than the S&P 500. Comparatively, Instructure’s peers have a beta of 1.13, suggesting that their average share price is 13% more volatile than the S&P 500.

Summary

Instructure beats its peers on 7 of the 12 factors compared.

About Instructure

Instructure, Inc. provides cloud-based learning management platform for academic institutions and companies across the world. The Company operates in the cloud-based learning management systems segment. The Company builds its learning management applications, Canvas for the education market and Bridge for the corporate market, to enable its customers to develop, deliver and manage face-to-face and online learning experiences. The Company develops software that students, teachers and employees use to help achieve their education and learning goals. Its applications develop academic and corporate learning by providing a platform for instructors and learners, enabling frequent and open interactions, streamlining workflow, and allowing the creation and sharing of content. The Company’s platform runs on a cloud-based architecture that enables users to teach, learn and engage across a range of application environments, operating systems, devices and locations.

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