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

Analyst Recommendations

This is a summary of recent recommendations and price targets for QAD and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
QAD 0 0 1 0 3.00
QAD Competitors 520 2416 4071 134 2.53

QAD presently has a consensus price target of $33.00, indicating a potential upside of 22.22%. As a group, “Enterprise Software” companies have a potential upside of 8.90%. Given QAD’s stronger consensus rating and higher probable upside, analysts clearly believe QAD is more favorable than its rivals.

Earnings & Valuation

This table compares QAD and its rivals revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
QAD $290.14 million $10.69 million -28.72
QAD Competitors $1.27 billion $348.20 million 34.88

QAD’s rivals have higher revenue and earnings than QAD. QAD 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.

Profitability

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

Net Margins Return on Equity Return on Assets
QAD -5.98% -0.48% -0.21%
QAD Competitors -24.68% -413.03% -8.20%

Insider & Institutional Ownership

1.8% of QAD shares are owned by institutional investors. Comparatively, 60.5% of shares of all “Enterprise Software” companies are owned by institutional investors. 67.4% of QAD shares are owned by company insiders. Comparatively, 22.7% of shares of all “Enterprise Software” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

QAD pays an annual dividend of $0.24 per share and has a dividend yield of 0.9%. 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 26.4% of their earnings in the form of a dividend. QAD is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Volatility & Risk

QAD has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, QAD’s rivals have a beta of 1.13, indicating that their average stock price is 13% more volatile than the S&P 500.

Summary

QAD beats its rivals 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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