Intuit (INTU) versus The Competition Financial Review

Intuit (NASDAQ: INTU) is one of 103 public companies in the “Enterprise Software” industry, but how does it compare to its peers? We will compare Intuit to similar businesses based on the strength of its institutional ownership, risk, earnings, valuation, dividends, analyst recommendations and profitability.

Profitability

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

Net Margins Return on Equity Return on Assets
Intuit 18.62% 77.56% 22.36%
Intuit Competitors -20.77% -23.67% -5.27%

Volatility & Risk

Intuit has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500. Comparatively, Intuit’s peers have a beta of 1.02, suggesting that their average stock price is 2% more volatile than the S&P 500.

Dividends

Intuit pays an annual dividend of $1.56 per share and has a dividend yield of 1.0%. Intuit pays out 41.3% of its earnings in the form of a dividend. As a group, “Enterprise Software” companies pay a dividend yield of 0.7% and pay out 31.5% of their earnings in the form of a dividend.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Intuit 2 5 11 0 2.50
Intuit Competitors 390 2252 4196 121 2.58

Intuit presently has a consensus price target of $153.75, indicating a potential downside of 3.13%. As a group, “Enterprise Software” companies have a potential upside of 2.33%. Given Intuit’s peers stronger consensus rating and higher probable upside, analysts clearly believe Intuit has less favorable growth aspects than its peers.

Earnings & Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Intuit $5.18 billion $971.00 million 41.99
Intuit Competitors $1.72 billion $283.04 million 16.25

Intuit has higher revenue and earnings than its peers. Intuit 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.

Institutional and Insider Ownership

86.0% of Intuit shares are held by institutional investors. Comparatively, 60.6% of shares of all “Enterprise Software” companies are held by institutional investors. 5.6% of Intuit shares are held by company insiders. Comparatively, 22.2% of shares of all “Enterprise Software” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Intuit beats its peers on 10 of the 15 factors compared.

About Intuit

Intuit Inc. is a provider of business and financial management solutions for small businesses, consumers and accounting professionals. The Company operates through three segments: Small Business, Consumer Tax and ProConnect. The Small Business segment serves and advises small businesses and the accounting professionals, and includes QuickBooks financial and business management online services and desktop software, payroll solutions, and payment processing solutions. The Small Business segment also includes third-party applications that integrate with the Company’s offerings. The Consumer Tax segment targets consumers and includes TurboTax products and services, which enable individuals to prepare and file their own federal and state personal income tax returns. The ProConnect segment targets professional accountants in the United States and Canada. Its ProConnect professional tax offerings include Lacerte, ProSeries, ProFile and ProConnect Tax Online.

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