True Competitor Identification

Pro v1.0.0 1 view

Identify genuine competitive peers for public companies based on business model analysis, not sector classifications. Find 5-10 true competitors ranked by overlap percentage for accurate valuation and competitive assessment.

What You Get

Get accurate peer groups for investment analysis by understanding which companies truly compete based on revenue model, customer segments, and go-to-market strategy. Avoid valuation errors from using sector classifications that group fundamentally different businesses together.

The Problem

Investors struggle to identify accurate competitive peers for valuation and competitive analysis because sector classifications (GICS, industry reports) group companies by broad categories that don't reflect actual business model similarity. A payment processor and an e-commerce marketplace might both be classified as 'Technology' or 'Fintech' despite having completely different revenue models, customer bases, and competitive dynamics. This leads to flawed peer-based valuations, misunderstood competitive threats, and poor investment decisions. Analysts need a systematic way to identify which companies truly compete on business model fundamentals rather than superficial industry labels.

The Solution

This skill conducts deep business model analysis by researching SEC 10-K filings, investor relations materials, and analyst reports to understand exactly how a company makes money. It maps business models across four dimensions: revenue model (subscription vs transaction vs advertising), customer segments (enterprise vs SMB vs consumer), product type (SaaS vs marketplace vs infrastructure), and go-to-market strategy (self-serve vs sales-led). The skill identifies 5-10 genuine competitors ranked by business model overlap percentage, classified into three tiers based on competitive intensity. Each competitor analysis includes specific overlap calculations, competitive dynamics explanations, and key differences. Crucially, it also identifies commonly-cited companies that are NOT competitors despite sharing sector classifications, explaining precisely why they're incomparable with business model evidence. The output provides actionable investment guidance on which peers to use for valuation multiples, margin comparisons, growth metrics, and competitive threat assessment.

How It Works

  1. 1 Research target company's SEC 10-K filing, investor materials, and analyst reports to extract business model across four dimensions: revenue model, customer segments, product type, and go-to-market strategy
  2. 2 Search for companies with similar business models using analyst reports and competitive intelligence sources, calculating overlap percentage for each potential competitor across the four dimensions
  3. 3 Rank competitors into three tiers based on business overlap: Tier 1 (>80% direct competition), Tier 2 (50-80% partial competition), Tier 3 (30-50% adjacent competition), documenting competitive dynamics for each
  4. 4 Identify companies that share sector classification but have fundamentally different business models, explaining why they are not comparable with specific overlap percentages and business model evidence
  5. 5 Generate investment implications covering which peers to use for valuation multiples, margin analysis, growth comparisons, market share analysis, and competitive threat assessment with specific actionable guidance

What You'll Need

  • Company ticker or name (must be publicly traded with SEC filings available)
  • Internet access for WebSearch and WebFetch to research SEC filings and investor materials
  • For conglomerates, specify which business segment to analyze (e.g., 'AWS segment' not 'Amazon overall')

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Requires Pro subscription ($9/month)

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Examples

Adobe Multi-Segment Competitor Analysis

Detailed segmentation of Adobe's three business lines (Creative Cloud, Document Cloud, Experience Cloud) to identify appropriate competitive peers for each segment. Shows how Autodesk (75% overlap) is the truest business model peer despite serving different creative verticals, while commonly-cited competitors Microsoft and Oracle have fundamentally different business models. Highlights the importance of subscription SaaS economics over generic 'software company' classifications for valuation purposes.

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PayPal Fintech Business Model Clarification

Untangles the confusing 'fintech' label by distinguishing payment processors (PayPal, Block, Adyen) from card networks (Visa/Mastercard), digital wallet interfaces (Apple Pay), and BNPL specialists (Affirm). Demonstrates why PayPal's 75% overlap with Block (similar dual-sided merchant/consumer platform) makes it the truest peer, while Visa's 15% overlap reflects fundamentally different take rates and business economics (network vs processor). Critical for understanding payment industry stack layers and avoiding valuation errors from improper peer selection.

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Spotify Music Streaming Competitive Analysis

Comprehensive analysis of Spotify's true competitive peers in music streaming, identifying Tencent Music (85% overlap) and YouTube Music (70% overlap) as primary competitors while explaining why Netflix, Live Nation, and record labels are misclassified despite being in 'entertainment'. Demonstrates proper peer selection for subscription audio streaming platforms, highlighting how content economics (royalty payments vs IP ownership) create structural margin differences that invalidate Netflix comparisons.

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