ModusLink Global Solutions (MLNK) versus Its Competitors Financial Contrast

ModusLink Global Solutions (NASDAQ: MLNK) is one of 182 publicly-traded companies in the “IT Services & Consulting” industry, but how does it contrast to its competitors? We will compare ModusLink Global Solutions to similar businesses based on the strength of its analyst recommendations, institutional ownership, earnings, profitability, valuation, risk and dividends.

Profitability

This table compares ModusLink Global Solutions and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ModusLink Global Solutions -5.39% -34.16% -7.72%
ModusLink Global Solutions Competitors -22.91% -280.64% -5.19%

Institutional & Insider Ownership

56.2% of ModusLink Global Solutions shares are owned by institutional investors. Comparatively, 61.4% of shares of all “IT Services & Consulting” companies are owned by institutional investors. 1.3% of ModusLink Global Solutions shares are owned by company insiders. Comparatively, 17.0% of shares of all “IT Services & Consulting” companies are owned by company 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.

Volatility and Risk

ModusLink Global Solutions has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, ModusLink Global Solutions’ competitors have a beta of 1.11, suggesting that their average share price is 11% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for ModusLink Global Solutions and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ModusLink Global Solutions 0 1 0 0 2.00
ModusLink Global Solutions Competitors 766 4652 7361 177 2.54

ModusLink Global Solutions presently has a consensus target price of $8.00, indicating a potential upside of 233.33%. As a group, “IT Services & Consulting” companies have a potential downside of 10.82%. Given ModusLink Global Solutions’ higher probable upside, analysts plainly believe ModusLink Global Solutions is more favorable than its competitors.

Valuation & Earnings

This table compares ModusLink Global Solutions and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
ModusLink Global Solutions $436.62 million -$25.82 million -5.85
ModusLink Global Solutions Competitors $2.79 billion $288.44 million 375.86

ModusLink Global Solutions’ competitors have higher revenue and earnings than ModusLink Global Solutions. ModusLink Global Solutions 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.

Summary

ModusLink Global Solutions competitors beat ModusLink Global Solutions on 10 of the 13 factors compared.

ModusLink Global Solutions Company Profile

ModusLink Global Solutions, Inc. is a provider of supply chain and logistics services through its subsidiaries, ModusLink Corporation and ModusLink PTS, Inc. The Company provides services to companies in the consumer electronics, communications, computing, software, storage and retail industries. The Company operates through four segments: Americas, Asia, Europe and e-business. As of July 31, 2016, the Company operated in over 20 sites across North America, Europe and the Asia Pacific region. The Company’s Supply Chain Business operation’s solutions include material planning and factory supply; value-added warehousing and distribution; aftermarket services, including product returns management and product repair and recovery, and e-business, including e-commerce, contact center, entitlement management and financial management.

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