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

Profitability

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

Net Margins Return on Equity Return on Assets
Model N -30.85% -52.59% -20.77%
Model N Competitors -25.29% -211.37% -8.18%

Analyst Recommendations

This is a summary of current ratings and price targets for Model N and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Model N 0 2 4 0 2.67
Model N Competitors 342 2039 3878 107 2.59

Model N currently has a consensus price target of $13.20, suggesting a potential downside of 9.28%. As a group, “Enterprise Software” companies have a potential upside of 4.25%. Given Model N’s rivals higher probable upside, analysts clearly believe Model N has less favorable growth aspects than its rivals.

Insider and Institutional Ownership

65.9% of Model N shares are held by institutional investors. Comparatively, 60.4% of shares of all “Enterprise Software” companies are held by institutional investors. 20.4% of Model N shares are held by insiders. Comparatively, 22.5% of shares of all “Enterprise Software” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

Model N has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500. Comparatively, Model N’s rivals have a beta of 1.13, meaning that their average stock price is 13% more volatile than the S&P 500.

Valuation and Earnings

This table compares Model N and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Model N $124.07 million -$29.98 million -10.78
Model N Competitors $1.27 billion $348.15 million 37.72

Model N’s rivals have higher revenue and earnings than Model N. Model N 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.

Summary

Model N rivals beat Model N on 7 of the 12 factors compared.

Model N Company Profile

Model N, Inc. is a provider of revenue management solutions for life science and technology companies. The Company’s solutions enable its customers to maximize revenues and reduce revenue compliance risk by transforming their revenue life cycle from a series of tactical, disjointed operations into a strategic end-to-end process. The Company’s solutions include Revenue Enterprise Cloud, Revenue Intelligence Cloud and Revvy Revenue Management. The Company provides solutions that span the organizational and operational boundaries of functions, such as sales, marketing and finance, and serve as a system of record for revenue management processes, including pricing, contracts, rebates, incentives and regulatory compliance. The Company’s application suites are designed to work with enterprise resource planning (ERP) and customer relationship management (CRM) applications. The Company also offers implementation services, managed services, strategic services and customer support.

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