Contrasting CA (CA) and The Competition

CA (NASDAQ: CA) is one of 182 publicly-traded companies in the “Prepackaged software” industry, but how does it contrast to its competitors? We will compare CA to related businesses based on the strength of its dividends, profitability, valuation, earnings, analyst recommendations, institutional ownership and risk.

Volatility and Risk

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CA has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500. Comparatively, CA’s competitors have a beta of -17.41, indicating that their average stock price is 1,841% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
CA 10.23% 16.52% 7.68%
CA Competitors -7.55% -81.69% -2.09%

Dividends

CA pays an annual dividend of $1.02 per share and has a dividend yield of 3.0%. CA pays out 44.5% of its earnings in the form of a dividend. As a group, “Prepackaged software” companies pay a dividend yield of 1.2% and pay out 42.5% of their earnings in the form of a dividend.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CA 2 9 4 0 2.13
CA Competitors 1055 5510 11451 441 2.61

CA currently has a consensus price target of $33.82, suggesting a potential downside of 2.01%. As a group, “Prepackaged software” companies have a potential upside of 5.72%. Given CA’s competitors stronger consensus rating and higher probable upside, analysts plainly believe CA has less favorable growth aspects than its competitors.

Valuation & Earnings

This table compares CA and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
CA $4.04 billion $775.00 million 15.07
CA Competitors $1.67 billion $248.68 million -1.43

CA has higher revenue and earnings than its competitors. CA is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Institutional and Insider Ownership

67.9% of CA shares are owned by institutional investors. Comparatively, 58.7% of shares of all “Prepackaged software” companies are owned by institutional investors. 0.9% of CA shares are owned by insiders. Comparatively, 22.6% of shares of all “Prepackaged software” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

CA beats its competitors on 9 of the 15 factors compared.

CA Company Profile

CA, Inc. (CA) is engaged in providing software solutions enabling customers to plan, develop, manage and secure applications and enterprise environments across distributed, cloud, mobile and mainframe platforms. The Company operates through three business segments: Mainframe Solutions, Enterprise Solutions and Services. Its Mainframe Solutions and Enterprise Solutions segments comprise the Company’s software business organized by the nature of its software offerings and the platform on which the products operate. The Services segment comprises product implementation, consulting, customer education, customer training and application management services. CA’s Mainframe Solutions segment consists of various product offerings, including Application Development, Databases and Database Management, Security & Compliance, and Systems and Operations Management. The Enterprise Solutions segment consists of various product offerings, including Agile Management, DevOps and Security.

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