U.S. Markets close in 1 hr 25 mins

How Does SS&C Technologies Compare to Its Peers?

Gabriel Kane

A Closer Look: SS&C Technologies' Mixed Quarterly Results in 3Q15

(Continued from Prior Part)

SS&C Technologies and its peers

In this article, we’ll compare SS&C Technologies (SSNC) to its industry peers. The PBV (price-to-book value) ratios of SS&C, Tableau Software (DATA), Manhattan Associates (MANH), Paycom Software (PAYC), and LogMeIn (LOGM) are 3.0x, 8.7x, 28.5x, 25.8x, and 9.1x, respectively.

Further details

The PS (or price-to-sales) ratios of SS&C, Tableau, Manhattan, Paycom, and LogMeIn are 8.9x, 11.7x, 9.9x, 12.5x, and 6.8x, respectively. Based on the PE and PS ratios, it seems that the company’s peers have outperformed it.

ETFs that invest in SS&C Technologies

The PowerShares DWA Technology Momentum ETF (PTF) invests 2.6% of its holdings in SS&C. The ETF tracks an index of US tech firms selected and weighted by price momentum.

The First Trust Technology AlphaDEX ETF (FXL) invests 1.5% of its holdings in SS&C. The ETF tracks a tiered equal-weighted index of US technology firms.

The iShares S&P North American Technology-Software ETF (IGV) invests 1.2% of its holdings in SS&C. The ETF tracks a market-cap-weighted index of US and Canadian software companies.

Comparing SS&C Technologies and its ETFs

Let’s take a closer look at SS&C and its ETFs:

  • The year-to-date price movements of SS&C, PTF, FXL, and IGV are 28.1%, 9.0%, -0.8%, and 13.0x, respectively.
  • The PE ratios of SS&C, PTF, FXL, and IGV are 46.0x, 67.3x, 20.9x, and 52.4x, respectively.
  • The PBV ratios of SS&C, PTF, FXL, and IGV are 3.0x, 7.1x, 2.9x, and 4.9x, respectively.

According to the numbers above, the ETFs outperformed SS&C based on the PE and PBV ratios. However, SS&C got ahead of its ETFs based on price movement.

Browse this series on Market Realist: