Reviewing Medidata Solutions (MDSO) and Its Competitors
Medidata Solutions (NASDAQ: MDSO) is one of 196 public companies in the “IT Services & Consulting” industry, but how does it weigh in compared to its rivals? We will compare Medidata Solutions to related businesses based on the strength of its analyst recommendations, profitability, valuation, risk, institutional ownership, earnings and dividends.
This table compares Medidata Solutions and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Medidata Solutions Competitors||-20.64%||-51.88%||-4.17%|
Volatility & Risk
Medidata Solutions has a beta of 1.77, meaning that its share price is 77% more volatile than the S&P 500. Comparatively, Medidata Solutions’ rivals have a beta of 1.27, meaning that their average share price is 27% more volatile than the S&P 500.
This is a summary of current ratings and recommmendations for Medidata Solutions and its rivals, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Medidata Solutions Competitors||683||4457||7464||169||2.56|
Medidata Solutions currently has a consensus price target of $84.64, suggesting a potential upside of 4.39%. As a group, “IT Services & Consulting” companies have a potential downside of 1.39%. Given Medidata Solutions’ stronger consensus rating and higher possible upside, analysts plainly believe Medidata Solutions is more favorable than its rivals.
Valuation and Earnings
This table compares Medidata Solutions and its rivals gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Medidata Solutions||$508.77 million||$76.83 million||130.77|
|Medidata Solutions Competitors||$2.12 billion||$367.63 million||16.60|
Medidata Solutions’ rivals have higher revenue and earnings than Medidata Solutions. Medidata Solutions is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
Insider and Institutional Ownership
97.5% of Medidata Solutions shares are held by institutional investors. Comparatively, 60.9% of shares of all “IT Services & Consulting” companies are held by institutional investors. 5.8% of Medidata Solutions shares are held by insiders. Comparatively, 16.8% of shares of all “IT Services & Consulting” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Medidata Solutions beats its rivals on 9 of the 13 factors compared.
About Medidata Solutions
Medidata Solutions Inc. (Medidata) is a provider of cloud-based solutions for life sciences. The Company provides cloud-based solutions for clinical research in life sciences, offering platform technology that focuses on the clinical development. The Company’s plan study addresses three areas to ensure optimal study design, grant development and negotiation, and investigator payments. Study Design Optimization enables customers to gain visibility into the impact of protocol elements on resource and trial endpoints. Grants Manager compares specific industry benchmarks and analytics, using industry’s database of negotiated procedure costs, to support appropriate grants to investigator sites and automated negotiations with multiple investigator sites. Payments enables customers to establish a global investigator payment strategy and process to automate payment calculation, distribution and reporting, including tax and currency exchange calculations.
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