Simulations Plus (NASDAQ: SLP) is one of 18 public companies in the “Medical Software & Technology Services” industry, but how does it compare to its peers? We will compare Simulations Plus to related businesses based on the strength of its profitability, valuation, risk, institutional ownership, earnings, analyst recommendations and dividends.

Dividends

Simulations Plus pays an annual dividend of $0.20 per share and has a dividend yield of 1.3%. Simulations Plus pays out 62.5% of its earnings in the form of a dividend. As a group, “Medical Software & Technology Services” companies pay a dividend yield of 1.3% and pay out 62.5% of their earnings in the form of a dividend.

Valuation & Earnings

This table compares Simulations Plus and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Simulations Plus $21.83 million $9.15 million 48.44
Simulations Plus Competitors $376.98 million $34.79 million 8.49

Simulations Plus’ peers have higher revenue and earnings than Simulations Plus. Simulations Plus is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

32.0% of Simulations Plus shares are owned by institutional investors. Comparatively, 63.1% of shares of all “Medical Software & Technology Services” companies are owned by institutional investors. 36.9% of Simulations Plus shares are owned by company insiders. Comparatively, 21.9% of shares of all “Medical Software & Technology Services” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for Simulations Plus and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Simulations Plus 0 0 0 0 N/A
Simulations Plus Competitors 114 485 798 16 2.51

As a group, “Medical Software & Technology Services” companies have a potential upside of 16.59%. Given Simulations Plus’ peers higher possible upside, analysts clearly believe Simulations Plus has less favorable growth aspects than its peers.

Volatility & Risk

Simulations Plus has a beta of -0.7, suggesting that its stock price is 170% less volatile than the S&P 500. Comparatively, Simulations Plus’ peers have a beta of 1.33, suggesting that their average stock price is 33% more volatile than the S&P 500.

Profitability

This table compares Simulations Plus and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Simulations Plus 24.86% 23.21% 19.23%
Simulations Plus Competitors -18.12% -11.70% -2.05%

Simulations Plus Company Profile

Simulations Plus, Inc. (Simulations Plus) develops and produces software for use in pharmaceutical research and for education, and provides consulting and contract research services to the pharmaceutical industry. The Company offers five software products for pharmaceutical research. ADMET (Absorption, Distribution, Metabolism, Excretion and Toxicity) Predictor is a computer program that takes molecular structures as inputs and predicts over 140 different properties for them at the rate of about 200,000 compounds per hour. MedChem Designer includes a small set of ADMET Predictor property predictions, allowing the chemist to modify molecular structures. MedChem Studio is a tool for medicinal and computational chemists for both data mining and for designing new drug-like molecules. DDDPlus simulates in-vitro laboratory experiments used to measure the rate of dissolution of the drug. GastroPlus simulates the absorption, pharmacokinetics, and pharmacodynamics of drugs.

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