American Software (NASDAQ: AMSWA) is one of 97 public companies in the “Enterprise Software” industry, but how does it weigh in compared to its rivals? We will compare American Software to similar companies based on the strength of its institutional ownership, profitability, risk, valuation, analyst recommendations, dividends and earnings.

Risk & Volatility

American Software has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500. Comparatively, American Software’s rivals have a beta of 1.12, indicating that their average share price is 12% more volatile than the S&P 500.

Profitability

This table compares American Software and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Software 14.81% 15.78% 11.15%
American Software Competitors -25.57% -221.71% -8.29%

Dividends

American Software pays an annual dividend of $0.44 per share and has a dividend yield of 3.5%. American Software pays out 84.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Enterprise Software” companies pay a dividend yield of 0.8% and pay out 26.9% of their earnings in the form of a dividend.

Earnings and Valuation

This table compares American Software and its rivals gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
American Software $105.74 million $12.37 million 23.85
American Software Competitors $1.27 billion $348.12 million 34.27

American Software’s rivals have higher revenue and earnings than American Software. American Software is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of current ratings for American Software and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Software 0 0 1 0 3.00
American Software Competitors 354 2093 3970 110 2.59

American Software currently has a consensus price target of $12.25, suggesting a potential downside of 1.21%. As a group, “Enterprise Software” companies have a potential upside of 0.05%. Given American Software’s rivals higher possible upside, analysts plainly believe American Software has less favorable growth aspects than its rivals.

Insider & Institutional Ownership

75.5% of American Software shares are owned by institutional investors. Comparatively, 59.2% of shares of all “Enterprise Software” companies are owned by institutional investors. 13.9% of American Software shares are owned by insiders. Comparatively, 23.5% of shares of all “Enterprise Software” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

American Software rivals beat American Software on 8 of the 15 factors compared.

American Software Company Profile

American Software, Inc. (American Software) develops, markets and supports a portfolio of software and services that delivers enterprise management, supply chain and retail planning solutions to the marketplace. The Company operates through three business segments: Supply Chain Management (SCM), Enterprise Resource Planning (ERP) and Information Technology (IT) Consulting. The SCM segment consists of Logility, Inc. and its subsidiary, Demand Management, Inc. (DMI), both of which provide supply chain and retail planning solutions to trading partners. The ERP segment consist of American Software ERP, which provides business software for manufacturers and distributors, and New Generation Computing, Inc. (NGC), which provides industry-specific business software to both retailers and manufacturers in the apparel, footwear, sewn products and furniture industries. The IT Consulting segment consists of The Proven Method, Inc., an IT staffing and consulting services firm.

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