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 weigh in compared to its peers? We will compare CA to related companies based on the strength of its risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.

Dividends

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CA pays an annual dividend of $1.02 per share and has a dividend yield of 2.9%. 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.

Earnings & Valuation

This table compares CA and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
CA $4.04 billion $775.00 million 15.28
CA Competitors $1.67 billion $249.32 million -1.22

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

Profitability

This table compares CA and its peers’ 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 -5.80% -80.72% -2.05%

Institutional & Insider Ownership

67.9% of CA shares are held by institutional investors. Comparatively, 59.8% of shares of all “Prepackaged software” companies are held by institutional investors. 0.9% of CA shares are held by insiders. Comparatively, 21.9% of shares of all “Prepackaged software” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

CA has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500. Comparatively, CA’s peers have a beta of -17.32, meaning that their average share price is 1,832% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for CA and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CA 2 9 4 0 2.13
CA Competitors 1056 5513 11454 441 2.61

CA presently has a consensus target price of $33.82, suggesting a potential downside of 3.38%. As a group, “Prepackaged software” companies have a potential upside of 4.72%. Given CA’s peers stronger consensus rating and higher possible upside, analysts clearly believe CA has less favorable growth aspects than its peers.

Summary

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

About CA

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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