Analyzing SmartRent (SMRT) and Its Competitors

SmartRent (NYSE:SMRT) is one of 959 publicly-traded companies in the “Software” industry, but how does it weigh in compared to its peers? We will compare SmartRent to similar companies based on the strength of its institutional ownership, profitability, risk, analyst recommendations, dividends, valuation and earnings.

Institutional & Insider Ownership

59.4% of SmartRent shares are held by institutional investors. Comparatively, 41.5% of shares of all “Software” companies are held by institutional investors. 2.3% of SmartRent shares are held by insiders. Comparatively, 19.9% of shares of all “Software” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares SmartRent and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
SmartRent	$156.56 million	-$60.56 million	-18.83
SmartRent Competitors	$1.90 billion	$383.57 million	112.39

SmartRent’s peers have higher revenue and earnings than SmartRent. SmartRent 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.

Dividends

SmartRent pays an annual dividend of $0.30 per share and has a dividend yield of 17.7%. SmartRent pays out -333.3% of its earnings in the form of a dividend. As a group, “Software” companies pay a dividend yield of 2.0% and pay out 50.2% of their earnings in the form of a dividend. SmartRent is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of current ratings and price targets for SmartRent and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SmartRent	1	1	1	0	2.00
SmartRent Competitors	5830	21607	44998	1500	2.57

SmartRent presently has a consensus price target of $1.48, suggesting a potential downside of 12.98%. As a group, “Software” companies have a potential upside of 27.94%. Given SmartRent’s peers stronger consensus rating and higher probable upside, analysts clearly believe SmartRent has less favorable growth aspects than its peers.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SmartRent	-11.02%	-7.59%	-5.73%
SmartRent Competitors	-599.26%	26.08%	-8.90%

Risk and Volatility

SmartRent has a beta of 1.64, meaning that its share price is 64% more volatile than the S&P 500. Comparatively, SmartRent’s peers have a beta of 1.35, meaning that their average share price is 35% more volatile than the S&P 500.

Summary

SmartRent peers beat SmartRent on 9 of the 15 factors compared.

SmartRent Company Profile

SmartRent, Inc. (NYSE: SMRT) provides smart-home technology and property-management solutions for rental housing owners, operators and residents. Its platform is designed to help housing providers manage connected properties, improve operational efficiency and offer residents digital control over home features and services. The company’s products and services include smart locks, thermostats, sensors, hubs, access-control systems and other connected devices, along with software for monitoring and managing properties.