Quality Systems (NASDAQ: QSII) is one of 195 public companies in the “IT Services & Consulting” industry, but how does it weigh in compared to its competitors? We will compare Quality Systems to similar businesses based on the strength of its earnings, analyst recommendations, risk, dividends, valuation, institutional ownership and profitability.

Earnings & Valuation

This table compares Quality Systems and its competitors gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Quality Systems $509.62 $18.24 30.79
Quality Systems Competitors $2,737.28 $282.94 47.17

Quality Systems’ competitors have higher revenue and earnings than Quality Systems. Quality Systems 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.

Institutional and Insider Ownership

69.1% of Quality Systems shares are owned by institutional investors. Comparatively, 60.8% of shares of all “IT Services & Consulting” companies are owned by institutional investors. 17.9% of Quality Systems shares are owned by insiders. Comparatively, 16.9% of shares of all “IT Services & Consulting” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Quality Systems and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Quality Systems 2 8 1 0 1.91
Quality Systems Competitors 688 4385 7137 155 2.55

Quality Systems presently has a consensus target price of $15.08, indicating a potential upside of 13.92%. As a group, “IT Services & Consulting” companies have a potential upside of 12.04%. Given Quality Systems’ higher possible upside, equities analysts clearly believe Quality Systems is more favorable than its competitors.

Risk and Volatility

Quality Systems has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500. Comparatively, Quality Systems’ competitors have a beta of 1.26, meaning that their average share price is 26% more volatile than the S&P 500.

Profitability

This table compares Quality Systems and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Quality Systems 5.12% 14.70% 9.41%
Quality Systems Competitors -19.93% -51.52% -3.67%

Summary

Quality Systems competitors beat Quality Systems on 7 of the 13 factors compared.

About Quality Systems

Quality Systems, Inc. (QSI) primarily, through its NextGen Healthcare subsidiary, provides technology-based solutions and services to the ambulatory care market in the United States. The Company is engaged in developing and marketing software and services that automate certain aspects of practice management (PM) and electronic health records (EHR) for medical and dental practices. The Company operates through three segments: the NextGen Division, the RCM Services Division and the QSI Dental Division. It also provides implementation, training, support and maintenance for software and complementary services, such as revenue cycle management (RCM) and electronic data interchange (EDI). The Company’s clients include single and small practice physicians, networks of practices, such as physician hospital organizations (PHOs), management service organizations (MSOs), accountable care organizations (ACOs), ambulatory care centers, community health centers, and medical and dental schools.

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