MassRoots, Inc. is currently grappling with significant challenges as it compares its performance to competitors within the technology sector focused on cannabis. According to recent data, MassRoots holds a beta of 2.45, indicating that its share price is approximately 145% more volatile than the S&P 500 index. In contrast, the average beta for its competitors stands at 1.21, suggesting they are 21% more volatile than the same benchmark. This heightened volatility may raise concerns for potential investors looking for stability in their portfolios.
Ownership and Institutional Insights
Institutional ownership plays a crucial role in assessing a company’s market position. Currently, only 22.1% of MassRoots shares are owned by institutional investors, significantly lower than the average of 45.8% for companies in the “Computer Programming, Data Processing, & Other Computer Related” sectors. Additionally, insider ownership at MassRoots is at 6.1%, compared to 13.6% for its industry peers. Strong institutional ownership often indicates confidence among large investors that a company will outperform its competitors over the long term.
Profitability and Valuation Comparisons
When examining profitability metrics, MassRoots continues to lag behind its competitors. A detailed comparison reveals that MassRoots has lower net margins, return on equity, and return on assets. Furthermore, while competitors boast higher revenue and earnings figures, MassRoots is currently trading at a higher price-to-earnings ratio. This situation suggests that investors may be paying a premium for MassRoots shares, which could lead to caution among potential buyers.
In summary, MassRoots is outperformed by its competitors in five out of nine key factors examined. The company, headquartered in Denver, CO, operates a social media network designed specifically for the cannabis community, including a rewards program known as WeedPass. This initiative allows consumers to earn tickets to various events by making purchases at participating dispensaries.
Founded in April 2013 by Isaac Dietrich, Stewart Fortier, Tyler Knight, and Hyler Fortier, MassRoots aims to carve out a niche in a rapidly evolving market. However, the current financial metrics suggest that the company must address its performance issues to remain competitive in the long run.
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