Red Hat Inc's Competitiveness
A competitive positioning analysis and financial ratio benchmarking of Red Hat Inc (RHT) against its publicly traded competitors: sales growth, net income, profitability, valuation and market share, plus each peer's market capitalization, revenue, income and employees. Free below: the top 5 peers. Subscriber access adds the full competitor list and CSV downloads.
Key Findings: Red Hat Inc vs Its Competitors
- TTM: Trailing 12-month revenue of 3,483M vs 494M combined for tracked competitors (87.6% combined share).
- Trending: Latest-quarter revenue run-rate is accelerating (+7.3% annualized vs trailing 12 months), vs decelerating (-67.3%) for its tracked peer group.
- Growth: Red Hat Inc generated 14.8% revenue growth year over year in Q4 2019, vs 45.5% for its tracked competitors combined.
- Profitability: Its 15.1% net margin compares with -31.1% for the peer group.
- Peer revenue share: Red Hat Inc accounted for 95.9% of combined revenue among its tracked peer group, down from 96.7% a year earlier.
- Peer differentiation: Revenue per employee of $0.48M compares with $0.43M for the peer group (1.1x).
Every figure above is sourced and cited in detail further down this page (Market Structure, Profitability & Cost Structure, Productivity vs Peers).
RHT Sales vs. its Competitors, Q4 2019
Red Hat Inc reported revenue growth of 14.82 % year on year in Q4 2019, below its competitors' combined revenue growth of 45.48 %.
With a net margin of 15.11 %, Red Hat Inc achieved higher profitability than its competitors (-31.14 %).
Red Hat Inc generated 95.86 % of the combined sales of its peer group, down from 96.70 % a year earlier.
Red Hat Inc vs. its Competitors, Q4 2019
Revenue growth, year on year
Net margin
Revenue run-rate vs trailing 12 months
TTM net margin
TTM = trailing twelve months. Run-rate annualizes the latest quarter (×4) and compares it to TTM. In millions of $. High-Confidence Competitors are named as a competitor directly in an SEC filing; Similar-Size Competitors are the closest peers by market-cap rank within the same industry; Similar Growth & Profitability Competitors are the closest peers by combined revenue growth, operating margin and ROIC, all independent of the competitor list.
TTM revenue, latest-quarter run-rate and net income/margin benchmarked across Red Hat Inc and its 4 competitor groupings. Available under Commercial License.
| Entity | TTM Revenue | Rev Run-rate vs TTM |
|---|---|---|
| Red Hat Inc | $12,345M | +12.3% · Accelerating |
| Competitors combined | $12,345M | +12.3% · Accelerating |
| High-Confidence Competitors (4) | $12,345M | +12.3% · Accelerating |
| Similar Growth & Profitability (3) | $12,345M | +12.3% · Accelerating |
TTM revenue, run-rate and net margin benchmarking across Red Hat Inc's competitor groups requires a Commercial License.
For context: the Internet Services & Social Media industry grew revenue 20.1% year over year, combined, vs 14.8% for Red Hat Inc. Red Hat Inc's share of combined industry revenue moved from 0.30% to 0.29%, a loss of 0.01 percentage points.
Red Hat Inc's Competitor Quality Breadth
Share of each group, trailing 12 months: profitable (net margin > 0), expanding (revenue growth > 0), growing faster than the industry's own median, and financially distressed (Piotroski F-Score of 2 or below).
| Entity | Profitable | Expanding | Above Industry Growth | Distressed |
|---|---|---|---|---|
| Red Hat Inc | Yes | Yes | Yes | No |
| Competitors combined (1) | ||||
| High-Confidence Competitors (5) | ||||
| Similar Growth & Profitability (8) | 75.00 % (6 of 8) | 100.00 % (8 of 8) | 87.50 % (7 of 8) | 0.00 % (0 of 7) |
Source: CSIMarket API, trailing 12 months. Altman Z-Score is not shown here: it is not populated in the underlying data for any company. Percentages are of companies in each group that report the relevant metric, not of the full group size.
RHT Stock Performance relative to its Competitors
RHT Stock Performance relative to High-Confidence Competitors
RHT Stock Performance relative to Similar Growth & Profitability Competitors
5 Best-Performing Tracked Competitors, Trailing 12 Months
| # | Competitor | TTM Share Price Return | vs U.S.A. 500 |
|---|---|---|---|
| 1 | Pagerduty Inc | 282.9% | Outperformed |
TTM share price return and U.S.A. 500 outperformance for Red Hat Inc's best-performing tracked competitors requires a Commercial License.
Source: CSIMarket API, trailing 12 months.
Publicly Traded Peers of Red Hat Inc
Revenue and income for trailing 12 months, in millions of $, except employees| Company | Market Cap | Revenues |
|---|---|---|
| Red Hat Inc | 35,033.26 | 3,482.65 |
| Pagerduty Inc | 1,145.96 | 494.36 |
| SUBTOTAL | 36,179.22 | 3,977.01 |
Sources: Red Hat Inc's official press releases and regulatory filings; CSIMarket.com's market research; and the financial filings and press releases of the other companies cited.
Updated on:
Focus of this report: publicly traded companies. Ten additional tables on Red Hat Inc versus competitors, including market share analysis, are in the navigation menu under Competition. To download the tables, please subscribe.
Red Hat Inc's Competitors Named by the Company
Competitive relationships identified from SEC filings and corroborating sources, each with a basis and confidence.| Competitor | Basis | Confidence |
|---|---|---|
| Pagerduty Inc | Named by the company | 85% |
| Jfrog Ltd | Named by the company | 85% |
| Vmware Inc | Named by the company | 85% |
| Nutanix Inc | Named by the company | 85% |
| Aptiv Plc | Named by the company | 85% |
Filing basis, confidence, active dates and source counts for Red Hat Inc's named competitors require a Commercial License.
Methodology: relationships are extracted from SEC filings (named-competitor disclosures) and corroborating sources. Named by the company = explicitly disclosed as a competitor; Inferred = derived from corroborating signals. Confidence reflects evidence strength.
Red Hat Inc's Productivity vs Peers Comparison
Revenue and income per employee, trailing 12 months, in $; market cap in millions of $| Company | Market Cap | Revenue / Employee | Income / Employee |
|---|---|---|---|
| Red Hat Inc | 35,033 | 477,075 | 63,276 |
| Pagerduty Inc | 1,146 | 428,014 | 158,889 |
| PEERS TOTAL | 1,146 | 428,014 | 158,889 |
Red Hat Inc's Geographic Revenue Exposure vs Peers
Revenue by country/region as reported in each company's most recent filing. Disclosure granularity varies by filer (some report by country, others by broad region) and is shown as disclosed.| Company | Largest Market |
|---|---|
| Red Hat Inc | Americas 62.34 % |
| Pagerduty Inc | United States 71.12 % |
Source: revenue geography as reported in each company's SEC filings (10-K/10-Q), via the CSIMarket API. Percentages are of that company's own total consolidated revenue for its most recent reported period.
Red Hat Inc's Profitability & Cost Structure
Trailing 12-month margins from SEC-filed financials. Operating margin is compared to the Internet Services & Social Media industry median; gross margin, EBITDA margin and capital intensity are compared to the live industry average (112 companies). See the full Internet Services & Social Media industry profitability benchmarks.| Metric | Company | Industry | Difference |
|---|---|---|---|
| Gross Margin | 85.07 % | 53.20 % (avg) | +31.9 pp |
| Operating Margin | 15.28 % | industry median | +16.3 pp |
| EBITDA Margin | 19.95 % | 8.63 % (avg) | +11.3 pp |
| Capital Intensity (Capex / Revenue) | 2.40 % | 6.24 % (avg) | -3.8 pp |
Source: CSIMarket API, trailing 12 months. SG&A and R&D as a share of revenue have limited coverage as this data is backfilled and appear only where reported. Higher capital intensity is not inherently negative; it reflects the industry's asset requirements.
Red Hat Inc's Valuation vs Competitive Position
Valuation multiples vs the Internet Services & Social Media industry average (112 companies, excluding loss-making/negative-equity outliers), alongside returns on capital for context on whether a premium or discount lines up with measurably stronger or weaker returns. See the full Internet Services & Social Media industry valuation benchmarks.| Metric | Company | Industry Average | Difference |
|---|---|---|---|
| P/E | 74.9x | 40.0x | +35.0x |
| EV / EBITDA | 50.1x | 20.6x | +29.5x |
| P/B | 22.8x | 4.5x | +18.3x |
| Return on Equity | 30.36 % | industry aggregate | 11.43 % |
| Return on Invested Capital | 12.30 % | 0.06 % (avg) | 12.24 % |
Source: CSIMarket API, trailing 12 months. A valuation premium or discount is not, by itself, a judgment of over- or under-valuation. Compare it against the return and growth context shown elsewhere on this page.
Red Hat Inc's Multi-Year Financial Trajectory
Fiscal-year revenue growth, operating margin, return on invested capital and P/E, as reported in SEC filings.| Metric | 2010 | 2011 | 2012 | 2016 | 2017 | 2018 |
|---|---|---|---|---|---|---|
| Revenue Growth | 19.73 % | 25.63 % | 18.23 % | 17.93 % | 19.36 % | 17.23 % |
| Operating Margin | 15.60 % | 17.65 % | 15.60 % | 13.32 % | 15.66 % | 14.98 % |
| Return on Invested Capital | 5.38 % | 6.51 % | 6.30 % | 7.91 % | 10.52 % | 11.38 % |
| P/E | 91.4x | 63.7x | 70.6x | 58.1x | 68.1x | 117.6x |
Source: CSIMarket API, fiscal-year figures. P/E is this company's own historical ratio at each fiscal year end and can swing sharply around an earnings trough: that is real, not a data error.
Red Hat Inc's Strategic Group Map
Every company in Red Hat Inc's industry and named-competitor list, plotted by trailing 12-month revenue growth and operating margin. Red Hat Inc is shown in red; its closest peers by combined growth, margin and ROIC (the Similar Growth & Profitability group above) are labeled.
Source: CSIMarket API, trailing 12 months. Extreme outlier values (from near-zero-revenue companies) are excluded from the plotted cloud but never from the highlighted company or its labeled peers.
Red Hat Inc's Competitive Forces (Porter's Five Forces)
Only the forces this data can support honestly are shown; the other three are marked as such rather than guessed.| Force | Assessment | Basis |
|---|---|---|
| Barriers to Entry | Lower than typical for the industry | Capital intensity (capex / revenue) of 2.40 % vs industry average 6.24 % (see Profitability & Cost Structure above) |
| Supplier Power | Not covered on this page | See Red Hat Inc's dedicated suppliers page for concentration and dependency data |
| Buyer Power | Not covered on this page | See Red Hat Inc's dedicated customers page for concentration and dependency data |
| Threat of Substitutes | - | No systematic data source for cross-product substitution exists in this system; not estimated |
Note: this is a partial, data-grounded application of the framework, not a complete strategic assessment. Rivalry and barriers-to-entry readings are mechanical translations of the HHI and capital-intensity figures shown elsewhere on this page, not independent judgments.
Red Hat Inc's Industry Attractiveness & Competitive Strength
A CSIMarket composite, not a standard field: each axis is an equal-weighted average of three factors already shown elsewhere on this page (industry growth, industry profitability and rivalry for attractiveness; relative market share, profitability and growth vs industry for strength). Disclosed as a designed methodology, not a precision measurement.
Red Hat Inc falls in the Low attractiveness / High strength cell: Selective.
Source: CSIMarket API, trailing 12 months. Each axis score is a simple 1(low)/2(medium)/3(high) average across its three inputs -- a transparent, disclosed simplification, not a validated academic scoring model.
Red Hat Inc's SWOT
Every point below is a fixed rule applied to a metric already shown elsewhere on this page (Market Structure, Profitability, Valuation, Run-Rate, Stock Performance, Quality Breadth) not an independent strategic assessment. A blank quadrant means no rule was met, not that none apply.Strengths
- Operating margin 16.3 points above the industry median.
- Return on equity 11.4 points above the industry aggregate.
- Latest-quarter revenue run-rate is accelerating (+7.3% annualized vs trailing 12 months).
Weaknesses
No rule matched.
Opportunities
No rule matched.
Threats
- Tracked peer group's revenue run-rate is broadly decelerating (-67.3% annualized).
Methodology: mechanical, rule-based SWOT. Each bullet reuses a figure already sourced and cited elsewhere on this page; nothing here is generated narrative or independent analyst judgment.
Red Hat Inc's Financial Strength vs Peers Comparison
Quick ratio, working capital, debt to equity and asset turnover, trailing 12 months| Company | Quick Ratio | Working Capital | Debt / Equity |
|---|---|---|---|
| Red Hat Inc | - | 1.25 | 0.25 |
| Pagerduty Inc | 0.87 | 2.08 | 1.55 |
Quick ratio = cash / current liabilities; working capital ratio = current assets / current liabilities; asset turnover = revenue / total assets. Peers in the Blank Checks industry are excluded.
Red Hat Inc's Revenue and Income Growth vs Peers
Quarterly revenue and net income growth, year over year and quarter over quarter| Company | Period | Revenue Y/Y | Income Y/Y |
|---|---|---|---|
| Red Hat Inc | Q2 2019 | +14.8 % | +24.7 % |
| Pagerduty Inc | Q2 2026 | +0.8 % | -18.1 % |
| PEERS TOTAL | +13.0 % | +21.4 % |
Growth is shown only where both periods are positive. Peers in the Blank Checks industry are excluded.
Red Hat Inc's Peers' Costs of Sales and Capital Expenditures
Context for revenue growth: peer costs and capex, year over year and quarter over quarter| Company | Period | Costs Y/Y | Capex Y/Y |
|---|---|---|---|
| Red Hat Inc | Q2 2019 | +17.6 % | +74.7 % |
| Pagerduty Inc | Q2 2026 | +5.5 % | +10.5 % |
Red Hat Inc's Returns and Turnover vs Peers
ROA, ROI and ROE (trailing 12 months), receivables and inventory turnover| Company | ROA | ROI | ROE |
|---|---|---|---|
| Red Hat Inc | 8.77% | 16.46% | 30.36% |
| Pagerduty Inc | 18.76% | 26.63% | 71.79% |
ROA = net income / total assets; ROI = net income / investments; ROE = net income / equity; turnover ratios use trailing 12 month revenue (receivables) and cost of sales (inventory).
Red Hat Inc's Valuation vs Peers
P/E, price to sales, PEG, price to cash flow and price to book| Company | P/E | Price / Sales |
|---|---|---|
| Red Hat Inc | 75.69 | 10.06 |
| Pagerduty Inc | 7.28 | 2.32 |
| PEERS AVERAGE | 56.05 | 9.10 |
P/E = price / diluted EPS (trailing 12 months); PEG = P/E divided by EPS growth; the average row divides the peers' combined market cap by their combined income, sales, cash flow and equity.