Analyzing Porch Group (PRCH) and Its Competitors

Porch Group (NASDAQ: PRCH) is one of 318 public companies in the “Prepackaged software” industry, but how does it contrast to its competitors? We will compare Porch Group to similar companies based on the strength of its risk, profitability, valuation, dividends, analyst recommendations, earnings and institutional ownership.

Institutional and Insider Ownership

56.8% of Porch Group shares are owned by institutional investors. Comparatively, 59.7% of shares of all “Prepackaged software” companies are owned by institutional investors. 19.2% of Porch Group shares are owned by insiders. Comparatively, 17.8% of shares of all “Prepackaged software” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Porch Group N/A -81.77% -26.75%
Porch Group Competitors -39.81% -62.75% -3.61%

Earnings and Valuation

This table compares Porch Group and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Porch Group $73.22 million -$51.61 million -10.25
Porch Group Competitors $1.90 billion $320.23 million 52.79

Porch Group’s competitors have higher revenue and earnings than Porch Group. Porch Group is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Porch Group has a beta of 0.17, meaning that its share price is 83% less volatile than the S&P 500. Comparatively, Porch Group’s competitors have a beta of -21.20, meaning that their average share price is 2,220% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Porch Group and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Porch Group 0 0 5 0 3.00
Porch Group Competitors 2160 11327 21168 607 2.57

Porch Group currently has a consensus price target of $24.75, indicating a potential upside of 27.12%. As a group, “Prepackaged software” companies have a potential upside of 13.39%. Given Porch Group’s stronger consensus rating and higher possible upside, analysts plainly believe Porch Group is more favorable than its competitors.

Summary

Porch Group competitors beat Porch Group on 7 of the 13 factors compared.

About Porch Group

Porch Group, Inc. operates a software platform in the United States and Canada. It provides software and services under the ISN, HireAHelper, and Kandela brands to home services companies, such as home inspectors, homebuyers and homeowners, insurance carriers, moving companies, security companies, and TV/internet providers, as well as offers moving concierge services. It also connects consumers with home services companies and offers a full range of products and services where homeowners compare and buy home insurance policies; arrange for various services in connection with their move, from labor to load or unload a truck to full-service, long-distance moving services; discover and install home automation and security systems; compare internet and television options for their home; book small handyman jobs at fixed, upfront prices; and compare bids from home improvement professionals who can complete bigger jobs. In addition, the company provides property and casualty, home, auto, flood, and umbrella insurance products; and contractor services. The company was founded in 2011 and is based in Seattle, Washington.

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