Analyzing QAD (QADB) & A10 Networks (ATEN)
QAD (NASDAQ: QADB) and A10 Networks (NYSE:ATEN) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, analyst recommendations, earnings, valuation, dividends and institutional ownership.
QAD pays an annual dividend of $0.24 per share and has a dividend yield of 0.8%. A10 Networks does not pay a dividend. QAD pays out -25.5% of its earnings in the form of a dividend.
Insider and Institutional Ownership
1.8% of QAD shares are held by institutional investors. Comparatively, 55.8% of A10 Networks shares are held by institutional investors. 67.4% of QAD shares are held by insiders. Comparatively, 34.1% of A10 Networks shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This table compares QAD and A10 Networks’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings and target prices for QAD and A10 Networks, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
QAD currently has a consensus target price of $33.00, suggesting a potential upside of 7.84%. A10 Networks has a consensus target price of $9.33, suggesting a potential upside of 27.68%. Given A10 Networks’ higher possible upside, analysts plainly believe A10 Networks is more favorable than QAD.
Volatility and Risk
QAD has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500. Comparatively, A10 Networks has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500.
Valuation and Earnings
This table compares QAD and A10 Networks’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|QAD||$290.14 million||0.34||$10.69 million||($0.94)||-32.55|
|A10 Networks||$233.04 million||1.85||-$7.82 million||($0.25)||-29.24|
QAD has higher revenue and earnings than A10 Networks. QAD is trading at a lower price-to-earnings ratio than A10 Networks, indicating that it is currently the more affordable of the two stocks.
QAD beats A10 Networks on 8 of the 14 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.
A10 Networks Company Profile
A10 Networks, Inc. is a provider of software and hardware solutions. The Company’s solutions enable its customers to secure and optimize the performance of their data center and cloud applications, and secure their users, applications and infrastructure from Internet, Web and network threats at scale. The Company offers a portfolio of hardware, software and cloud offerings. Its customers include cloud providers, Web-scale companies, service providers, government organizations and enterprises. The Company’s portfolio consists of six application delivery and security products, including Application Delivery Controllers (ADC), Lightning Application Delivery Service (Lightning ADS), Carrier Grade Network Address Translation (CGN), Threat Protection System (TPS), SSL Insight (SSLi) and Convergent Firewall (CFW). The Company’s products are available in a range of form factors, such as optimized hardware appliances, bare metal software, virtual appliances and cloud-native software.
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