Reviewing Pitney Bowes (PBI) & Its Rivals

Pitney Bowes (NYSE: PBI) is one of 82 publicly-traded companies in the “COMPUTER/OFFICE EQUIP” industry, but how does it weigh in compared to its peers? We will compare Pitney Bowes to related companies based on the strength of its analyst recommendations, valuation, profitability, earnings, institutional ownership, dividends and risk.

Valuation & Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Pitney Bowes $3.55 billion $261.34 million 7.72
Pitney Bowes Competitors $9.37 billion $967.38 million 15.94

Pitney Bowes’ peers have higher revenue and earnings than Pitney Bowes. Pitney Bowes 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.

Analyst Ratings

This is a summary of current ratings for Pitney Bowes and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pitney Bowes 1 1 1 0 2.00
Pitney Bowes Competitors 773 3331 5895 253 2.55

Pitney Bowes presently has a consensus target price of $14.50, suggesting a potential upside of 33.15%. As a group, “COMPUTER/OFFICE EQUIP” companies have a potential upside of 16.47%. Given Pitney Bowes’ higher probable upside, research analysts clearly believe Pitney Bowes is more favorable than its peers.

Profitability

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

Net Margins Return on Equity Return on Assets
Pitney Bowes 7.36% 388.23% 4.16%
Pitney Bowes Competitors -9.86% 1.76% -2.51%

Dividends

Pitney Bowes pays an annual dividend of $0.75 per share and has a dividend yield of 6.9%. Pitney Bowes pays out 53.2% of its earnings in the form of a dividend. As a group, “COMPUTER/OFFICE EQUIP” companies pay a dividend yield of 2.3% and pay out 37.3% of their earnings in the form of a dividend.

Volatility & Risk

Pitney Bowes has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500. Comparatively, Pitney Bowes’ peers have a beta of 1.55, suggesting that their average stock price is 55% more volatile than the S&P 500.

Institutional and Insider Ownership

75.6% of Pitney Bowes shares are owned by institutional investors. Comparatively, 52.0% of shares of all “COMPUTER/OFFICE EQUIP” companies are owned by institutional investors. 2.0% of Pitney Bowes shares are owned by company insiders. Comparatively, 13.5% of shares of all “COMPUTER/OFFICE EQUIP” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Pitney Bowes peers beat Pitney Bowes on 9 of the 15 factors compared.

Pitney Bowes Company Profile

Pitney Bowes Inc. offers customer information management, location intelligence, and customer engagement products and solutions in the United States and internationally. The company operates in three segments: Small & Medium Business Solutions; Enterprise Business Solutions; and Digital Commerce Solutions. The Small & Medium Business Solutions segment provides mailing and office solutions; and financing services and supplies for small and medium businesses. The Enterprise Business Solutions segment offers equipment and services that enable large enterprises to process inbound and outbound mail. This segment also provides production mail inserting and sortation equipment, production print systems, and supplies and related support services, as well as mail presort services. The Digital Commerce Solutions segment provides a range of solutions, including customer information management, location intelligence, customer engagement software, shipping management, and cross border e-commerce solutions as traditional software licenses, enterprise platforms, software-as-a-service, and on-demand applications, as well as offers related support services. The company also provides revolving credit and interest-bearing deposit solutions. Pitney Bowes Inc. markets its products through sales force, direct mailings, telemarketing, and Web and partner channels. The company was formerly known as Pitney Bowes Postage Meter Company. Pitney Bowes Inc. was founded in 1920 and is headquartered in Stamford, Connecticut.

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