Contrasting QAD (QADB) and Its Rivals

QAD (NASDAQ: QADB) is one of 97 public 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 analyst recommendations, earnings, valuation, risk, profitability, dividends and institutional ownership.

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 -5.98% -0.48% -0.21%
QAD Competitors -24.87% -210.59% -7.75%

Valuation & Earnings

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

Gross Revenue EBITDA Price/Earnings Ratio
QAD $290.14 million $10.69 million -31.91
QAD Competitors $1.27 billion $348.15 million 37.20

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.

Risk and Volatility

QAD has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500. Comparatively, QAD’s competitors have a beta of 1.13, suggesting that their average share price is 13% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for QAD and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
QAD 0 0 1 0 3.00
QAD Competitors 343 2046 3889 107 2.59

QAD currently has a consensus target price of $33.00, indicating a potential upside of 10.00%. As a group, “Enterprise Software” companies have a potential upside of 2.30%. Given QAD’s stronger consensus rating and higher possible upside, equities analysts clearly believe QAD is more favorable than its competitors.

Dividends

QAD pays an annual dividend of $0.24 per share and has a dividend yield of 0.8%. QAD pays out -25.5% 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 27.3% of their earnings in the form of a dividend. QAD is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

1.8% of QAD shares are owned by institutional investors. Comparatively, 61.2% of shares of all “Enterprise Software” companies are owned by institutional investors. 67.4% of QAD shares are owned by company insiders. Comparatively, 22.1% of shares of all “Enterprise Software” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

QAD beats its competitors on 9 of the 14 factors compared.

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.

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