Critical Analysis: Benefitfocus (BNFT) vs. Its Rivals

Benefitfocus (NASDAQ: BNFT) is one of 97 publicly-traded companies in the “Enterprise Software” industry, but how does it contrast to its peers? We will compare Benefitfocus to similar companies based on the strength of its institutional ownership, risk, profitability, dividends, analyst recommendations, valuation and earnings.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Benefitfocus and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Benefitfocus 0 2 7 0 2.78
Benefitfocus Competitors 342 2036 3876 107 2.59

Benefitfocus presently has a consensus target price of $40.00, suggesting a potential upside of 27.39%. As a group, “Enterprise Software” companies have a potential upside of 4.40%. Given Benefitfocus’ stronger consensus rating and higher possible upside, research analysts clearly believe Benefitfocus is more favorable than its peers.

Risk and Volatility

Benefitfocus has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500. Comparatively, Benefitfocus’ peers have a beta of 1.13, suggesting that their average stock price is 13% more volatile than the S&P 500.

Earnings and Valuation

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

Gross Revenue EBITDA Price/Earnings Ratio
Benefitfocus $248.19 million -$6.36 million -34.13
Benefitfocus Competitors $1.27 billion $348.15 million 37.20

Benefitfocus’ peers have higher revenue and earnings than Benefitfocus. Benefitfocus 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Benefitfocus -11.24% N/A -16.22%
Benefitfocus Competitors -25.29% -211.37% -8.18%

Institutional and Insider Ownership

84.6% of Benefitfocus shares are owned by institutional investors. Comparatively, 60.4% of shares of all “Enterprise Software” companies are owned by institutional investors. 40.1% of Benefitfocus shares are owned by insiders. Comparatively, 22.5% of shares of all “Enterprise Software” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Benefitfocus beats its peers on 8 of the 12 factors compared.

About Benefitfocus

Benefitfocus, Inc. (Benefitfocus) is a provider of cloud-based benefits management platform for consumers, employers, insurance carriers and brokers. The Benefitfocus Platform allows how organizations and individuals shop for, enroll in, manage and exchange benefits. The Company operates through two business segments: Employer, which derives its revenue from customers that use the Company’s services for the provision of benefits to their employees, and administrators acting on behalf of employers, Carrier, which derives its revenue from insurance companies that provide coverage at their own risk. Its solutions support benefits plans, including healthcare, dental, life and disability insurance, and voluntary benefits plans, such as critical illness, supplemental income and wellness programs. It provides a multi-tenant cloud-based benefits management platform to the employer and carrier markets.

Receive News & Ratings for Benefitfocus Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Benefitfocus Inc. and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

Leave a Reply