Tyler Technologies (TYL) and Its Peers Financial Analysis

Tyler Technologies (NYSE:TYL) is one of 953 public companies in the “Software” industry, but how does it contrast to its peers? We will compare Tyler Technologies to similar companies based on the strength of its earnings, profitability, analyst recommendations, risk, dividends, valuation and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Tyler Technologies and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tyler Technologies	0	4	11	1	2.81
Tyler Technologies Competitors	5747	21523	44878	1497	2.57

Tyler Technologies currently has a consensus target price of $440.88, suggesting a potential upside of 4.89%. As a group, “Software” companies have a potential upside of 29.24%. Given Tyler Technologies’ peers higher possible upside, analysts plainly believe Tyler Technologies has less favorable growth aspects than its peers.

Insider and Institutional Ownership

93.3% of Tyler Technologies shares are held by institutional investors. Comparatively, 41.8% of shares of all “Software” companies are held by institutional investors. 1.1% of Tyler Technologies shares are held by company insiders. Comparatively, 19.9% of shares of all “Software” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

Tyler Technologies has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500. Comparatively, Tyler Technologies’ peers have a beta of 1.34, meaning that their average share price is 34% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tyler Technologies	13.51%	12.21%	7.30%
Tyler Technologies Competitors	-612.64%	20.88%	-8.99%

Valuation and Earnings

This table compares Tyler Technologies and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Tyler Technologies	$2.33 billion	$315.60 million	52.94
Tyler Technologies Competitors	$1.79 billion	$385.91 million	106.78

Tyler Technologies has higher revenue, but lower earnings than its peers. Tyler Technologies 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.

Summary

Tyler Technologies beats its peers on 7 of the 13 factors compared.

Tyler Technologies Company Profile

Tyler Technologies, Inc. provides integrated information management solutions and services for the public sector. It operates in two segments, Enterprise Software and Platform Technologies. The company offers platform and transformative technology solutions, including cybersecurity for government agencies; data and insights solutions; digital solutions that helps workers and policymakers to share, communicate, and leverage data; payments solutions, such as billing, presentment, merchant onboarding, collections, reconciliation, and disbursements; platform technologies, an application development platform that enables government workers to build solutions and applications; and outdoor recreation solutions, including campsite reservations, activity registrations, licensing sales and renewals, and real-time data for conservation and park management. It also provides public administration solutions, such as civic services; financial applications with human resources, revenue management, tax billing, utilities, asset management, and payment processing; property and recording service that manages appraisal services, valuation, tax billing and collections, assessment administration, and land and official records; and permitting, licensing, and regulatory management solutions. In addition, the company offers courts and public safety solutions; school ERP and student transportation solutions for K-12 schools; and health and human services solutions. Further, the company offers software as a service arrangements and electronic document filing solutions for courts; software and hardware installation, data conversion, training, product modification, and maintenance and support services; and property appraisal outsourcing services for taxing jurisdictions. Tyler Technologies, Inc. has a strategic collaboration agreement with Amazon Web Services for cloud hosting services. The company was founded in 1966 and is headquartered in Plano, Texas.