Critical Analysis: Model N (NYSE:MODN) and Trimble Navigation (TRMB)
Model N (NYSE: MODN) and Trimble Navigation (NASDAQ:TRMB) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitabiliy, risk, institutional ownership, dividends, analyst recommendations, valuation and earnings.
Valuation and Earnings
This table compares Model N and Trimble Navigation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Model N||$117.75 million||3.19||-$30.67 million||($1.30)||-10.04|
|Trimble Navigation||$2.39 billion||3.97||$410.40 million||$0.64||58.67|
Trimble Navigation has higher revenue and earnings than Model N. Model N is trading at a lower price-to-earnings ratio than Trimble Navigation, indicating that it is currently the more affordable of the two stocks.
This table compares Model N and Trimble Navigation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
66.9% of Model N shares are held by institutional investors. Comparatively, 90.5% of Trimble Navigation shares are held by institutional investors. 20.4% of Model N shares are held by company insiders. Comparatively, 1.4% of Trimble Navigation shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Risk and Volatility
Model N has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500. Comparatively, Trimble Navigation has a beta of 2.3, meaning that its share price is 130% more volatile than the S&P 500.
This is a breakdown of current recommendations and price targets for Model N and Trimble Navigation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Model N currently has a consensus target price of $13.67, indicating a potential upside of 4.73%. Trimble Navigation has a consensus target price of $33.50, indicating a potential downside of 10.79%. Given Model N’s stronger consensus rating and higher probable upside, research analysts plainly believe Model N is more favorable than Trimble Navigation.
Trimble Navigation beats Model N on 9 of the 13 factors compared between the two stocks.
Model N Company Profile
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.
Trimble Navigation Company Profile
Trimble Inc., formerly Trimble Navigation Limited, provides technology solutions for professionals and field mobile workers. The Company operates through four segments: Engineering and Construction, Field Solutions, Mobile Solutions and Advanced Devices. The Engineering and Construction segment serves customers working in architecture, engineering, construction, geospatial and government. The Field Solutions segment provides solutions for the farming, government and consumer markets, with its products focused on agriculture and geographic information systems (GIS). The Mobile Solutions segment provides solutions that enable end users to monitor and manage their mobile work, mobile workers and mobile assets in the areas of transportation and logistics, and field services management. The Advanced Devices segment consists of the Embedded Technologies, Timing, Applanix, Military and Advanced Systems (MAS) and ThingMagic businesses.
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