Monotype Imaging (TYPE) and The Competition Critical Analysis

Monotype Imaging (NASDAQ: TYPE) is one of 414 publicly-traded companies in the “COMPUTER SOFT/SERV” industry, but how does it compare to its rivals? We will compare Monotype Imaging to similar companies based on the strength of its risk, analyst recommendations, institutional ownership, dividends, earnings, profitability and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Monotype Imaging and its rivals, as reported by

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Monotype Imaging 1 0 1 0 2.00
Monotype Imaging Competitors 2354 11126 22808 845 2.60

Monotype Imaging currently has a consensus price target of $27.50, suggesting a potential upside of 15.30%. As a group, “COMPUTER SOFT/SERV” companies have a potential upside of 2.57%. Given Monotype Imaging’s higher probable upside, analysts plainly believe Monotype Imaging is more favorable than its rivals.

Volatility and Risk

Monotype Imaging has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500. Comparatively, Monotype Imaging’s rivals have a beta of 0.84, suggesting that their average stock price is 16% less volatile than the S&P 500.


Monotype Imaging pays an annual dividend of $0.45 per share and has a dividend yield of 1.9%. Monotype Imaging pays out 166.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “COMPUTER SOFT/SERV” companies pay a dividend yield of 2.0% and pay out 46.8% of their earnings in the form of a dividend. Monotype Imaging lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.


This table compares Monotype Imaging and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Monotype Imaging 4.90% 6.10% 3.73%
Monotype Imaging Competitors -25.85% -40.96% -2.49%

Institutional & Insider Ownership

93.4% of Monotype Imaging shares are owned by institutional investors. Comparatively, 55.0% of shares of all “COMPUTER SOFT/SERV” companies are owned by institutional investors. 2.3% of Monotype Imaging shares are owned by company insiders. Comparatively, 20.6% of shares of all “COMPUTER SOFT/SERV” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Monotype Imaging and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Monotype Imaging $235.79 million $11.56 million 88.33
Monotype Imaging Competitors $2.47 billion $272.98 million 11.37

Monotype Imaging’s rivals have higher revenue and earnings than Monotype Imaging. Monotype Imaging 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.


Monotype Imaging rivals beat Monotype Imaging on 9 of the 15 factors compared.

Monotype Imaging Company Profile

Monotype Imaging Holdings Inc. is engaged in the development, marketing and licensing of technologies and fonts. The Company empowers expression and engagement for creatives, designers, engineers and marketers. It organizes its business operations into two areas: creative professionals and original equipment manufacturer (OEM). For Creative Professional market, it provides content across multiple devices and mediums. Its solutions, which include type, branded mobile content, visual content marketing solutions, custom design services, and tools and technologies that enable the creative process, are licensed through its direct sales channel, e-commerce platforms and partner platforms. It also provides consumer device manufacturers and independent software vendors with the right solutions for delivering consistent, compelling user experiences. It works with a range of customers, including brands, agencies and publishers. As of December 31, 2016, it offered over 17,000 typeface designs.

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