As Application Software company, Rosetta Stone Inc. (NYSE:RST) is competing with its peers based on the institutional ownership, profitability, risk, dividends, analyst recommendations, earnings and valuation.

Institutional & Insider Ownership

Rosetta Stone Inc. has 84.9% of its shares owned by institutional investors and an average of 58.59% institutional ownership for its rivals. 0.4% of Rosetta Stone Inc. shares are owned by company insiders. Comparatively, 8.68% of all Application Software companies shares are owned by company insiders.

Profitability

On first table we have Rosetta Stone Inc. and its competitors’ net margins, return on assets and return on equity.

Net Margins Return on Equity Return on Assets
Rosetta Stone Inc. -8.44% 468.10% -8.00%
Industry Average 4.71% 49.50% 10.20%

Valuation and Earnings

The following data compares Rosetta Stone Inc. and its competitors’ net income, gross revenue and valuation.

Net Income Gross Revenue Price/Earnings Ratio
Rosetta Stone Inc. 14.68M 173.85M 0.00
Industry Average 41.49M 880.39M 161.84

Analyst Recommendations

Table 3 shows breakdown of current ratings for Rosetta Stone Inc. and its competitors.

Sell Ratings Hold Ratings Buy Ratings Rating Score
Rosetta Stone Inc. 0 0 1 3.00
Industry Average 1.07 2.81 3.58 2.64

With average target price of $24, Rosetta Stone Inc. has a potential upside of 46.34%. The potential upside of the peers is 75.77%. By having stronger average rating and higher possible upside, Rosetta Stone Inc. make equities research analysts believe that the business is more favorable than its rivals.

Performance

In this table we provide the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of Rosetta Stone Inc. and its competitors.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
Rosetta Stone Inc. 4.61% -6.12% 17.87% 10.21% 45.18% 40.18%
Industry Average 4.98% 9.32% 17.30% 22.53% 49.23% 51.89%

For the past year Rosetta Stone Inc. was less bullish than its peers.

Liquidity

Rosetta Stone Inc. has a Current Ratio of 0.5 and a Quick Ratio of 0.5. Competitively, Rosetta Stone Inc.’s peers Current Ratio is 2.45 and has 2.41 Quick Ratio. Rosetta Stone Inc.’s rivals have better ability to pay short and long-term obligations than Rosetta Stone Inc.

Risk & Volatility

Rosetta Stone Inc. is 71.00% less volatile than S&P 500 because the stock has a beta of 0.29. In other hand, Rosetta Stone Inc.’s peers have beta of 1.13 which is 12.62% more volatile than S&P 500.

Dividends

Rosetta Stone Inc. does not pay a dividend.

Summary

Rosetta Stone Inc.’s rivals beat Rosetta Stone Inc. on 3 of the 4 factors.

Rosetta Stone Inc., together with its subsidiaries, provides technology-based learning products in the United States and internationally. It operates through three segments: Literacy, E&E Language, and Consumer Language. The company develops, markets, and supports a suite of language-learning, literacy, and brain fitness solutions consisting of Web-based software subscriptions, perpetual software products, online and professional services, audio practice products, and mobile applications. It also provides administrative tools for performance monitoring, and to measure and track learner progress; and custom solutions, including curriculum development, global collaboration programs, group and live tutoring, and language courses for mission-critical government programs. The company offers its courses in approximately 30 languages under the Rosetta Stone, The Blue Stone Logo, Lexia, Lexia PowerUP Literacy, TruAccent, and Catalyst brand names. It sells its products and services through call centers, Websites, app-stores, third party e-commerce Websites, select retail resellers, consignment distributors, daily deal partners, and third-party resellers, as well as directly to individuals, educational institutions, corporations, and government agencies. Rosetta Stone Inc. was founded in 1992 and is headquartered in Arlington, Virginia.



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