CA (NASDAQ:CA) versus Its Competitors Head-To-Head Review

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

Volatility & 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 rivals have a beta of -17.32, indicating that their average stock price is 1,832% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for CA and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CA 2 9 3 0 2.07
CA Competitors 1062 5547 11512 447 2.61

CA presently has a consensus price target of $32.96, indicating a potential downside of 5.16%. As a group, “Prepackaged software” companies have a potential upside of 4.28%. Given CA’s rivals stronger consensus rating and higher possible upside, analysts plainly believe CA has less favorable growth aspects than its rivals.

Earnings and Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
CA $4.04 billion $775.00 million 15.17
CA Competitors $1.67 billion $249.35 million -1.11

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

Dividends

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.

Insider & Institutional Ownership

67.9% of CA shares are held by institutional investors. Comparatively, 59.5% of shares of all “Prepackaged software” companies are held by institutional investors. 0.9% of CA shares are held by company insiders. Comparatively, 22.0% of shares of all “Prepackaged software” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares CA and its rivals’ 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 -5.66% -80.78% -1.71%

Summary

CA beats its rivals 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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