BMC Software (NASDAQ: BMC) and QAD (NASDAQ:QADB) are both technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, earnings and valuation.

Earnings and Valuation

This table compares BMC Software and QAD’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BMC Software N/A N/A N/A $2.17 N/A
QAD $277.97 million 2.07 -$15.45 million ($1.03) -29.03

BMC Software has higher earnings, but lower revenue than QAD. QAD is trading at a lower price-to-earnings ratio than BMC Software, indicating that it is currently the more affordable of the two stocks.

Dividends

QAD pays an annual dividend of $0.24 per share and has a dividend yield of 0.8%. BMC Software does not pay a dividend. QAD pays out -23.3% of its earnings in the form of a dividend.

Profitability

This table compares BMC Software and QAD’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BMC Software N/A N/A N/A
QAD -6.40% -2.06% -0.86%

Insider & Institutional Ownership

1.9% of QAD shares are owned by institutional investors. 67.4% of QAD shares are owned by 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.

Analyst Recommendations

This is a summary of recent ratings and price targets for BMC Software and QAD, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BMC Software 0 0 0 0 N/A
QAD 0 0 1 0 3.00

QAD has a consensus price target of $33.00, indicating a potential upside of 10.37%.

Summary

QAD beats BMC Software on 6 of the 10 factors compared between the two stocks.

About BMC Software

BMC Software, Inc. is a United States-based company. The Company is specializing in business service management software. It develops, markets and sells software used for multiple functions, including information technology (IT) service management, data center automation, performance management, virtualization lifecycle management and cloud computing management. The Company offers a business service management (BSM) platform. Its IT Initiatives include Application Management, Cloud Management for Enterprise, Cloud Management for Service Providers, Consumerization of IT, Data Center Automation, IT Business Management, IT Service Management (ITSM), IT Infrastructure Library (ITIL) and Self-Service IT. The Company’s functional areas include request and support, such as asset management and change management; monitor and operate, such as cloud operations and mainframe automation; provision and configure; govern and control, and integrate and orchestrate.

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.

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