Head-To-Head Survey: Rosetta Stone (NYSE:RST) & Its Competitors

Rosetta Stone (NYSE: RST) is one of 60 publicly-traded companies in the “Application Software” industry, but how does it compare to its peers? We will compare Rosetta Stone to related companies based on the strength of its valuation, institutional ownership, risk, dividends, analyst recommendations, earnings and profitability.

Earnings & Valuation

This table compares Rosetta Stone and its peers revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Rosetta Stone $194.09 million -$27.55 million -24.79
Rosetta Stone Competitors $980.90 million $67.84 million 433.97

Rosetta Stone’s peers have higher revenue and earnings than Rosetta Stone. Rosetta Stone 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.

Institutional and Insider Ownership

73.0% of Rosetta Stone shares are held by institutional investors. Comparatively, 68.8% of shares of all “Application Software” companies are held by institutional investors. 14.5% of Rosetta Stone shares are held by company insiders. Comparatively, 15.0% of shares of all “Application Software” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Rosetta Stone -4.97% -926.26% -3.43%
Rosetta Stone Competitors -66.98% -104.54% -16.79%

Volatility and Risk

Rosetta Stone has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500. Comparatively, Rosetta Stone’s peers have a beta of 4.57, suggesting that their average share price is 357% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Rosetta Stone and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rosetta Stone 0 0 1 0 3.00
Rosetta Stone Competitors 175 1482 2786 86 2.61

Rosetta Stone currently has a consensus target price of $15.00, suggesting a potential upside of 40.71%. As a group, “Application Software” companies have a potential upside of 12.87%. Given Rosetta Stone’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Rosetta Stone is more favorable than its peers.

Rosetta Stone Company Profile

Rosetta Stone Inc. (Rosetta Stone) offers personalized language and reading programs. The Company’s solutions are used by schools, businesses, government organizations and individuals around the world. Its segments include Enterprise & Education, which derives revenues from sales to educational institutions, corporations and government agencies worldwide, and Consumer, which derives revenue from sales to individuals and retail partners. Its cloud-based programs allow users to learn online or on-the-go via tablet or smartphone, whether in a classroom, corporate setting, or personal learning environment. Its Fit Brains business offers personalized brain training programs. The Company offers courses in over 30 languages across formats, including Web-based software subscriptions, digital downloads, mobile applications, and perpetual compact disc packages. It also offers a portfolio of technology-based learning products for personal use to the global consumer.

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