Critical Analysis: Quality Systems (QSII) versus The Competition
Quality Systems (NASDAQ: QSII) is one of 183 public companies in the “IT Services & Consulting” industry, but how does it weigh in compared to its competitors? We will compare Quality Systems to similar businesses based on the strength of its earnings, risk, analyst recommendations, dividends, institutional ownership, profitability and valuation.
This table compares Quality Systems and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Quality Systems Competitors||-20.42%||-257.73%||-4.52%|
Earnings and Valuation
This table compares Quality Systems and its competitors revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Quality Systems||$509.62 million||$18.24 million||33.14|
|Quality Systems Competitors||$2.81 billion||$293.37 million||231.84|
Quality Systems’ competitors have higher revenue and earnings than Quality Systems. Quality Systems is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
Insider & Institutional Ownership
72.3% of Quality Systems shares are held by institutional investors. Comparatively, 63.3% of shares of all “IT Services & Consulting” companies are held by institutional investors. 17.9% of Quality Systems shares are held by company insiders. Comparatively, 16.4% of shares of all “IT Services & Consulting” companies are held by company 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.
This is a breakdown of recent ratings and recommmendations for Quality Systems and its competitors, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Quality Systems Competitors||729||4649||7387||163||2.54|
Quality Systems presently has a consensus target price of $15.07, suggesting a potential upside of 5.76%. As a group, “IT Services & Consulting” companies have a potential upside of 3.80%. Given Quality Systems’ higher possible upside, analysts clearly believe Quality Systems is more favorable than its competitors.
Risk and Volatility
Quality Systems has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, Quality Systems’ competitors have a beta of 1.12, suggesting that their average stock price is 12% more volatile than the S&P 500.
Quality Systems competitors beat Quality Systems on 7 of the 13 factors compared.
Quality Systems Company Profile
Quality Systems, Inc. (QSI) primarily, through its NextGen Healthcare subsidiary, provides technology-based solutions and services to the ambulatory care market in the United States. The Company is engaged in developing and marketing software and services that automate certain aspects of practice management (PM) and electronic health records (EHR) for medical and dental practices. The Company operates through three segments: the NextGen Division, the RCM Services Division and the QSI Dental Division. It also provides implementation, training, support and maintenance for software and complementary services, such as revenue cycle management (RCM) and electronic data interchange (EDI). The Company’s clients include single and small practice physicians, networks of practices, such as physician hospital organizations (PHOs), management service organizations (MSOs), accountable care organizations (ACOs), ambulatory care centers, community health centers, and medical and dental schools.
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