Critical Review: QAD (QADB) and Its Peers
QAD (NASDAQ: QADB) is one of 97 publicly-traded companies in the “Enterprise Software” industry, but how does it weigh in compared to its competitors? We will compare QAD to related companies based on the strength of its earnings, risk, dividends, valuation, institutional ownership, profitability and analyst recommendations.
This table compares QAD and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares QAD and its competitors gross 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||36.83|
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.
Volatility & Risk
QAD has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500. Comparatively, QAD’s competitors have a beta of 1.13, meaning that their average stock price is 13% more volatile than the S&P 500.
This is a breakdown 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 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 probable upside, analysts plainly believe QAD is more favorable than its competitors.
Insider & 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 insiders. Comparatively, 22.1% of shares of all “Enterprise Software” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
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.
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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