Analyzing Zix Corporation (ZIXI) and Its Competitors

Zix Corporation (NASDAQ: ZIXI) is one of 187 public companies in the “IT Services & Consulting” industry, but how does it contrast to its competitors? We will compare Zix Corporation to similar businesses based on the strength of its profitability, institutional ownership, analyst recommendations, dividends, earnings, valuation and risk.

Profitability

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

Net Margins Return on Equity Return on Assets
Zix Corporation 10.49% 15.64% 9.49%
Zix Corporation Competitors -14.56% -252.38% -3.04%

Insider and Institutional Ownership

66.6% of Zix Corporation shares are held by institutional investors. Comparatively, 62.9% of shares of all “IT Services & Consulting” companies are held by institutional investors. 4.5% of Zix Corporation shares are held by insiders. Comparatively, 15.9% of shares of all “IT Services & Consulting” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Zix Corporation has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500. Comparatively, Zix Corporation’s competitors have a beta of 1.10, indicating that their average stock price is 10% more volatile than the S&P 500.

Earnings & Valuation

This table compares Zix Corporation and its competitors revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Zix Corporation $60.14 million $5.83 million 35.69
Zix Corporation Competitors $2.81 billion $294.33 million 288.55

Zix Corporation’s competitors have higher revenue and earnings than Zix Corporation. Zix Corporation 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 Recommendations

This is a summary of recent ratings for Zix Corporation and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zix Corporation 0 1 1 0 2.50
Zix Corporation Competitors 717 4612 7356 161 2.54

Zix Corporation currently has a consensus price target of $6.75, indicating a potential upside of 45.47%. As a group, “IT Services & Consulting” companies have a potential upside of 3.74%. Given Zix Corporation’s higher possible upside, equities research analysts plainly believe Zix Corporation is more favorable than its competitors.

Summary

Zix Corporation competitors beat Zix Corporation on 7 of the 13 factors compared.

About Zix Corporation

Zix Corporation offers e-mail encryption, data loss prevention and bring-your-own-device (BYOD) security to meet business data protection and compliance needs. The Company operates through e-mail encryption and security solutions. Its Zix Email Encryption enables the secure exchange of e-mails that include sensitive information through a secure messaging service. It offers ZixDirectory, an e-mail encryption community that is designed to share identities of its members; Best Method of Delivery, which is designed to deliver e-mail, and ZixGateway, which automatically encrypts and decrypts messages with sensitive content. ZixCorp delivers over 1.5 million encrypted messages on a typical business day. On an average, 70% of those encrypted messages are exchanged between senders and recipients. It also offers ZixQuarantine, an e-mail-specific solution. Its ZixOne is a mobile e-mail application that solves the information technology (IT) challenge created by the BYOD trend in the workplace.

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