QAD (NASDAQ: QADA) and SolarWinds (NYSE:SWI) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, earnings, valuation, institutional ownership, risk, profitability and analyst recommendations.

Earnings and Valuation

This table compares QAD and SolarWinds’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
QAD $290.14 million 2.41 $10.69 million ($0.94) -38.67
SolarWinds N/A N/A N/A N/A N/A

QAD has higher revenue and earnings than SolarWinds.

Dividends

QAD pays an annual dividend of $0.29 per share and has a dividend yield of 0.8%. SolarWinds does not pay a dividend. QAD pays out -30.9% of its earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
QAD -5.98% -0.47% -0.20%
SolarWinds 20.52% 19.24% 12.70%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for QAD and SolarWinds, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
QAD 0 1 4 0 2.80
SolarWinds 0 0 0 0 N/A

QAD presently has a consensus price target of $35.67, suggesting a potential downside of 1.88%. Given QAD’s higher possible upside, equities research analysts clearly believe QAD is more favorable than SolarWinds.

Insider and Institutional Ownership

43.7% of QAD shares are held by institutional investors. 44.1% of QAD shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

QAD beats SolarWinds on 7 of the 10 factors compared between the two stocks.

About QAD

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.

About SolarWinds

SolarWinds, Inc. (SolarWinds) is a holding company. The Company designs, develops, markets, sells and supports enterprise-class information technology (IT), infrastructure management software to IT and DevOps professionals in organizations of all sizes. Its products categories include network management, which is used to monitor and manage the performance of network infrastructure; systems management, which is used to monitor and manage the performance of applications, physical and virtual servers, storage and databases; MSP, which is used by managed service providers to monitor and manage the IT infrastructure of their end clients, SMBs, and cloud, its cloud-based products, which are used to monitor and manage applications and application infrastructure. Its customers include small- and mid-size businesses, enterprises, MSPs, and local, state and federal Government entities.

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