Critical Analysis: Snail (SNAL) and The Competition

Snail (NASDAQ:SNAL) is one of 433 publicly-traded companies in the “Prepackaged software” industry, but how does it compare to its peers? We will compare Snail to related companies based on the strength of its risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.

Risk & Volatility

Snail has a beta of 2.07, indicating that its stock price is 107% more volatile than the S&P 500. Comparatively, Snail’s peers have a beta of 1.33, indicating that their average stock price is 33% more volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Snail	$60.90 million	-$9.09 million	-4.55
Snail Competitors	$1.97 billion	$295.23 million	39.24

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

Insider and Institutional Ownership

0.4% of Snail shares are owned by institutional investors. Comparatively, 56.9% of shares of all “Prepackaged software” companies are owned by institutional investors. 75.7% of Snail shares are owned by insiders. Comparatively, 20.1% of shares of all “Prepackaged software” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Snail	0	0	0	0	N/A
Snail Competitors	1839	13221	27019	690	2.62

As a group, “Prepackaged software” companies have a potential upside of 17.97%. Given Snail’s peers higher possible upside, analysts clearly believe Snail has less favorable growth aspects than its peers.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Snail	-5.84%	-104.80%	-5.10%
Snail Competitors	-78.91%	-46.62%	-7.77%

Summary

Snail peers beat Snail on 6 of the 10 factors compared.

About Snail

Snail, Inc., together with its subsidiaries, researches, develops, markets, publishes, and distributes interactive digital entertainment for consumers worldwide. It offers games, content, and support for various platforms, including game consoles, personal computers, mobile phones, and tablets. Snail, Inc. was founded in 2009 and is headquartered in Culver City, California. Snail, Inc. operates as a subsidiary of Olive Wood Global Development Limited.