Financial Contrast: QAD (QADA) & Its Rivals

QAD (NASDAQ: QADA) is one of 103 publicly-traded companies in the “Enterprise Software” industry, but how does it contrast to its competitors? We will compare QAD to related businesses based on the strength of its institutional ownership, analyst recommendations, dividends, profitability, valuation, earnings and risk.

Profitability

This table compares QAD and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
QAD -6.40% -2.05% -0.85%
QAD Competitors -22.31% -213.12% -7.21%

Analyst Recommendations

This is a summary of current recommendations and price targets for QAD and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
QAD 0 1 4 0 2.80
QAD Competitors 375 2212 4145 120 2.59

QAD presently has a consensus target price of $40.67, suggesting a potential upside of 12.96%. As a group, “Enterprise Software” companies have a potential upside of 6.29%. Given QAD’s stronger consensus rating and higher probable upside, analysts clearly believe QAD is more favorable than its competitors.

Insider & Institutional Ownership

44.9% of QAD shares are owned by institutional investors. Comparatively, 61.0% of shares of all “Enterprise Software” companies are owned by institutional investors. 44.1% of QAD shares are owned by insiders. Comparatively, 22.2% of shares of all “Enterprise Software” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk and Volatility

QAD has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, QAD’s competitors have a beta of 1.06, indicating that their average share price is 6% more volatile than the S&P 500.

Valuation & Earnings

This table compares QAD and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
QAD $277.97 million -$15.45 million -34.95
QAD Competitors $1.76 billion $288.64 million 45.23

QAD’s competitors have higher revenue and earnings than QAD. QAD is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Dividends

QAD pays an annual dividend of $0.22 per share and has a dividend yield of 0.6%. QAD pays out -21.4% of its earnings in the form of a dividend. As a group, “Enterprise Software” companies pay a dividend yield of 0.8% and pay out 32.7% of their earnings in the form of a dividend.

Summary

QAD beats its competitors on 8 of the 14 factors compared.

About QAD

QAD Inc. (QAD) is a provider of vertically oriented enterprise software solutions for global manufacturing companies across the automotive, life sciences, consumer products, food and beverage, high technology and industrial products industries. QAD Enterprise Applications enables measurement and control of business processes and supports operational requirements, including financials, manufacturing, demand and supply chain planning, customer management, business intelligence and business process management. QAD delivers components of its solution for a range of mobile platforms. The Company’s mobile suite includes a requisition approval solution, a mobile business intelligence solution, mobile browse capability and mobile application monitoring tools to support system administrators. Its mobile browse capability allows users to view, filter and sort data accessible through QAD Browses within QAD Enterprise Applications using mobile devices.

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