Contrasting Model N (NYSE:MODN) and The Competition

Model N (NYSE: MODN) is one of 97 public companies in the “Enterprise Software” industry, but how does it contrast to its peers? We will compare Model N to similar businesses based on the strength of its institutional ownership, risk, profitability, earnings, valuation, dividends and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Model N and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Model N 0 2 4 0 2.67
Model N Competitors 345 2057 3911 107 2.59

Model N presently has a consensus price target of $13.20, indicating a potential downside of 8.01%. As a group, “Enterprise Software” companies have a potential upside of 2.31%. Given Model N’s peers higher possible upside, analysts clearly believe Model N has less favorable growth aspects than its peers.

Profitability

This table compares Model N and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Model N -30.85% -52.59% -20.77%
Model N Competitors -24.79% -210.47% -7.66%

Institutional & Insider Ownership

65.9% of Model N shares are owned by institutional investors. Comparatively, 60.0% of shares of all “Enterprise Software” companies are owned by institutional investors. 20.4% of Model N shares are owned by company insiders. Comparatively, 23.0% of shares of all “Enterprise Software” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Model N and its peers top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Model N $124.07 million -$29.98 million -10.63
Model N Competitors $1.27 billion $348.09 million 36.11

Model N’s peers have higher revenue and earnings than Model N. Model N 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.

Risk and Volatility

Model N has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, Model N’s peers have a beta of 1.13, indicating that their average stock price is 13% more volatile than the S&P 500.

Summary

Model N peers beat Model N on 7 of the 12 factors compared.

About Model N

Model N, Inc. is a provider of revenue management solutions for life science and technology companies. The Company’s solutions enable its customers to maximize revenues and reduce revenue compliance risk by transforming their revenue life cycle from a series of tactical, disjointed operations into a strategic end-to-end process. The Company’s solutions include Revenue Enterprise Cloud, Revenue Intelligence Cloud and Revvy Revenue Management. The Company provides solutions that span the organizational and operational boundaries of functions, such as sales, marketing and finance, and serve as a system of record for revenue management processes, including pricing, contracts, rebates, incentives and regulatory compliance. The Company’s application suites are designed to work with enterprise resource planning (ERP) and customer relationship management (CRM) applications. The Company also offers implementation services, managed services, strategic services and customer support.

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