Constellation Software (OTCMKTS:CNSWF – Get Free Report) is one of 953 public companies in the “Software” industry, but how does it contrast to its peers? We will compare Constellation Software to similar companies based on the strength of its valuation, earnings, analyst recommendations, risk, profitability, institutional ownership and dividends.
Earnings & Valuation
This table compares Constellation Software and its peers revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Constellation Software | $11.62 billion | $512.00 million | 55.10 |
| Constellation Software Competitors | $1.80 billion | $386.69 million | 106.67 |
Constellation Software has higher revenue and earnings than its peers. Constellation Software 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.
Insider & Institutional Ownership
41.8% of shares of all “Software” companies are held by institutional investors. 19.9% of shares of all “Software” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Volatility & Risk
Constellation Software has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500. Comparatively, Constellation Software’s peers have a beta of 1.34, meaning that their average stock price is 34% more volatile than the S&P 500.
Dividends
Constellation Software pays an annual dividend of $4.00 per share and has a dividend yield of 0.2%. Constellation Software pays out 8.8% of its earnings in the form of a dividend. As a group, “Software” companies pay a dividend yield of 1.9% and pay out 48.0% of their earnings in the form of a dividend.
Profitability
This table compares Constellation Software and its peers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Constellation Software | 7.60% | 47.37% | 12.80% |
| Constellation Software Competitors | -612.64% | 20.88% | -8.99% |
Analyst Ratings
This is a summary of recent ratings for Constellation Software and its peers, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Constellation Software | 0 | 1 | 5 | 1 | 3.00 |
| Constellation Software Competitors | 5740 | 21515 | 44870 | 1493 | 2.57 |
As a group, “Software” companies have a potential upside of 28.85%. Given Constellation Software’s peers higher possible upside, analysts plainly believe Constellation Software has less favorable growth aspects than its peers.
Summary
Constellation Software beats its peers on 9 of the 15 factors compared.
About Constellation Software
Constellation Software Inc., together with its subsidiaries, acquires, builds, and manages vertical market software businesses in Canada, the United States, Europe, and internationally. It provides mission critical software solutions for public and private sector markets. The company is also involved in the software licensing; and sale of third-party hardware. In addition, it offers professional, and maintenance and other recurring services. Constellation Software Inc. was incorporated in 1995 and is headquartered in Toronto, Canada.
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