QAD (NASDAQ: QADA) and Computer Task Group (NASDAQ:CTG) are both small-cap technology companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, risk, profitability, earnings and analyst recommendations.
This table compares QAD and Computer Task Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Computer Task Group||0.78%||4.50%||2.80%|
Insider & Institutional Ownership
44.8% of QAD shares are owned by institutional investors. Comparatively, 45.7% of Computer Task Group shares are owned by institutional investors. 44.1% of QAD shares are owned by company insiders. Comparatively, 10.4% of Computer Task Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This is a breakdown of recent recommendations for QAD and Computer Task Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Computer Task Group||0||0||1||0||3.00|
QAD presently has a consensus target price of $44.50, indicating a potential upside of 8.67%. Computer Task Group has a consensus target price of $9.00, indicating a potential upside of 76.13%. Given Computer Task Group’s stronger consensus rating and higher possible upside, analysts clearly believe Computer Task Group is more favorable than QAD.
Valuation and Earnings
This table compares QAD and Computer Task Group’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|QAD||$277.97 million||2.84||-$15.45 million||($1.00)||-40.95|
|Computer Task Group||$324.89 million||0.24||-$34.63 million||$0.15||34.07|
QAD has higher earnings, but lower revenue than Computer Task Group. QAD is trading at a lower price-to-earnings ratio than Computer Task Group, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
QAD has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, Computer Task Group has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500.
QAD pays an annual dividend of $0.14 per share and has a dividend yield of 0.3%. Computer Task Group does not pay a dividend. QAD pays out -14.0% of its earnings in the form of a dividend.
Computer Task Group beats QAD on 10 of the 16 factors compared between the two stocks.
QAD Company Profile
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.
Computer Task Group Company Profile
Computer Task Group, Incorporated (CTG) is an information technology (IT) solutions and staffing services company. The Company primarily operates in the segment of providing IT services to its clients. The Company has operations in North America and Europe. The Company is engaged in providing IT services, including IT Solutions, and IT and other Staffing. CTG provides these primary services to all of the markets that it serves. The services provided encompass the IT business solution life cycle, including phases for planning, developing, implementing, managing, and maintaining the IT solution. It provides administrative or warehouse employees to clients to supplement the IT resources. The Company promotes a portion of its services through five vertical market focus areas: technology service providers, manufacturing, healthcare (which includes services provided to healthcare providers, health insurers, and life sciences companies), financial services, and diversified industrials.
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