Critical Review: Rover Group (ROVR) vs. Its Competitors

Rover Group (NASDAQ:ROVR – Get Rating) is one of 63 publicly-traded companies in the “Personal services” industry, but how does it compare to its competitors? We will compare Rover Group to similar companies based on the strength of its dividends, institutional ownership, valuation, profitability, risk, analyst recommendations and earnings.

Valuation & Earnings

This table compares Rover Group and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Rover Group	$109.84 million	-$64.05 million	-4.66
Rover Group Competitors	$686.58 million	$58.98 million	23.77

Rover Group’s competitors have higher revenue and earnings than Rover Group. Rover Group is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Rover Group and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rover Group	-72.28%	-21.97%	-9.22%
Rover Group Competitors	-24.25%	340.80%	-3.81%

Insider and Institutional Ownership

78.8% of Rover Group shares are held by institutional investors. Comparatively, 55.9% of shares of all “Personal services” companies are held by institutional investors. 21.7% of shares of all “Personal services” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Rover Group has a beta of 0.04, meaning that its share price is 96% less volatile than the S&P 500. Comparatively, Rover Group’s competitors have a beta of 1.14, meaning that their average share price is 14% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Rover Group and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rover Group	0	1	5	0	2.83
Rover Group Competitors	271	1025	1551	85	2.49

Rover Group presently has a consensus target price of $10.17, indicating a potential upside of 78.99%. As a group, “Personal services” companies have a potential upside of 27.05%. Given Rover Group’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Rover Group is more favorable than its competitors.

Summary

Rover Group competitors beat Rover Group on 9 of the 13 factors compared.

About Rover Group (Get Rating)

Rover Group, Inc. operates an online marketplace for pet care worldwide. It connects pet parents with pet providers who offer overnight services, including boarding and in-home pet sitting, as well as daytime services, such as doggy daycare, dog walking, drop-in visits, grooming, and training. The company is headquartered in Seattle, Washington.

Want More Great Investing Ideas?