QAD (NASDAQ: QADB) is one of 97 publicly-traded companies in the “Enterprise Software” industry, but how does it compare to its rivals? We will compare QAD to similar companies based on the strength of its risk, dividends, profitability, valuation, institutional ownership, analyst recommendations and earnings.

Profitability

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

Net Margins Return on Equity Return on Assets
QAD -5.98% -0.48% -0.21%
QAD Competitors -24.56% -412.83% -8.08%

Dividends

QAD pays an annual dividend of $0.24 per share and has a dividend yield of 0.9%. QAD pays out -25.5% of its earnings in the form of a dividend. As a group, “Enterprise Software” companies pay a dividend yield of 0.8% and pay out 26.4% of their earnings in the form of a dividend. QAD is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

1.8% of QAD shares are held by institutional investors. Comparatively, 61.0% of shares of all “Enterprise Software” companies are held by institutional investors. 67.4% of QAD shares are held by insiders. Comparatively, 22.7% of shares of all “Enterprise Software” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for QAD and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
QAD 0 0 1 0 3.00
QAD Competitors 516 2407 4052 134 2.54

QAD presently has a consensus price target of $33.00, indicating a potential upside of 18.79%. As a group, “Enterprise Software” companies have a potential upside of 7.84%. Given QAD’s stronger consensus rating and higher probable upside, equities research analysts clearly believe QAD is more favorable than its rivals.

Valuation and Earnings

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

Gross Revenue EBITDA Price/Earnings Ratio
QAD $290.14 million $10.69 million -29.55
QAD Competitors $1.27 billion $344.82 million 33.89

QAD’s rivals have higher revenue and earnings than QAD. QAD 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.

Volatility & Risk

QAD has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500. Comparatively, QAD’s rivals have a beta of 1.13, meaning that their average share price is 13% more volatile than the S&P 500.

Summary

QAD beats its rivals on 9 of the 14 factors compared.

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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