Financial Comparison: Absolute Software (ALSWF) versus The Competition

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Absolute Software	10.16%	-23.28%	9.44%
Absolute Software Competitors	-624.19%	42.89%	-8.23%

Volatility and Risk

Absolute Software has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, Absolute Software’s peers have a beta of 1.18, indicating that their average stock price is 18% more volatile than the S&P 500.

Valuation & Earnings

This table compares Absolute Software and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Absolute Software	$104.67 million	$10.64 million	0.12
Absolute Software Competitors	$1.81 billion	$387.36 million	72.46

Absolute Software’s peers have higher revenue and earnings than Absolute Software. Absolute Software 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.

Institutional & Insider Ownership

1.2% of Absolute Software shares are held by institutional investors. Comparatively, 42.4% of shares of all “Software” companies are held by institutional investors. 19.9% of shares of all “Software” companies are held 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.

Dividends

Absolute Software pays an annual dividend of $0.24 per share and has a dividend yield of 857.1%. Absolute Software pays out 100.0% 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, “Software” companies pay a dividend yield of 2.1% and pay out 50.7% of their earnings in the form of a dividend.

Summary

Absolute Software peers beat Absolute Software on 8 of the 11 factors compared.

About Absolute Software

Absolute Software Corp. engages in the provision of cloud-based service that supports the management and security of computing devices, applications, and data for a variety of organizations. Its solutions includes education, financial services, general date protection regulations (GDPR) compliance, government, healthcare, professional services, and technology solutions such as Absolute for Android, and Absolute for Chromebook. The company was founded on November 24, 1993 and is headquartered in Vancouver, Canada.