Simulations Plus (NASDAQ: EBIX) and Ebix (NASDAQ:EBIX) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, analyst recommendations, valuation and profitability.
Insider and Institutional Ownership
38.5% of Simulations Plus shares are owned by institutional investors. Comparatively, 66.6% of Ebix shares are owned by institutional investors. 33.5% of Simulations Plus shares are owned by insiders. Comparatively, 13.5% of Ebix shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Simulations Plus pays an annual dividend of $0.24 per share and has a dividend yield of 1.2%. Ebix pays an annual dividend of $0.30 per share and has a dividend yield of 0.4%. Simulations Plus pays out 70.6% of its earnings in the form of a dividend. Ebix pays out 9.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
This is a breakdown of current ratings and price targets for Simulations Plus and Ebix, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ebix has a consensus target price of $104.33, indicating a potential upside of 34.80%. Given Ebix’s higher probable upside, analysts plainly believe Ebix is more favorable than Simulations Plus.
Earnings and Valuation
This table compares Simulations Plus and Ebix’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Simulations Plus||$24.14 million||13.92||$5.78 million||$0.34||56.91|
|Ebix||$363.97 million||6.70||$100.61 million||$3.17||24.42|
Ebix has higher revenue and earnings than Simulations Plus. Ebix is trading at a lower price-to-earnings ratio than Simulations Plus, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Simulations Plus has a beta of -0.85, indicating that its stock price is 185% less volatile than the S&P 500. Comparatively, Ebix has a beta of 1.3, indicating that its stock price is 30% more volatile than the S&P 500.
This table compares Simulations Plus and Ebix’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Ebix beats Simulations Plus on 8 of the 15 factors compared between the two stocks.
About Simulations Plus
Simulations Plus, Inc. develops drug discovery and development software for mechanistic modeling and simulation worldwide. The company offers GastroPlus, which simulates the absorption, pharmacokinetics (PK), and pharmacodynamics of drugs administered to humans and animals; DDDPlus that simulates in vitro laboratory experiments, which measure the rate of dissolution of the drug and additives in a dosage form; and MembranePlus, which simulates laboratory experiments. It also provides PKPlus, a standalone program that provides the functionality needed by pharmaceutical industry scientists to perform the analyses and generate the outputs needed to satisfy regulatory agency requirements for NCA and compartmental PK modelling; ADMET Predictor, a chemistry-based computer program, which takes molecular structures as inputs and predicts their properties; and MedChem Designer, a molecule drawing program or sketcher that integrates with MedChem Studio and ADMET Predictor. In addition, it offers MedChem Studio, a software tool for data mining and designing new molecules; KIWI, a cloud-based Web application, which organizes, processes, maintains, and communicates the volume of data and results generated by pharmacologists and scientists over the duration of a drug development program; DILIsym, a quantitative systems pharmacology software; and DILIsym, a software that is used to investigate the likelihood that a known drug molecule would cause injury to the liver. Further, the company provides consulting services ranging from early drug discovery through preclinical and clinical trial data analysis, and for submissions to regulatory agencies; and population modeling and simulation contract research services for the pharmaceutical and biotechnology industries. Additionally, it offers its pharmaceutical/chemistry software to pharmaceutical, biotechnology, agrochemical, and food companies. Simulations Plus, Inc. was founded in 1996 and is headquartered in Lancaster, California.
Ebix, Inc. provides software and e-commerce solutions to insurance, finance, and healthcare industries. It offers software development, customization, and consulting services to various entities in the insurance industry, including carriers, brokers, exchanges, and standard making bodies. The company operates data exchanges in the areas of life insurance, annuities, employee health benefits, risk management, workers compensation, insurance underwriting, and property and casualty (P&C) insurance. It also focuses on designing and deploying back-end systems, such as eGlobal, which targets multinational P&C insurance brokers; WinBeat that targets P&C brokers in the Australian and New Zealand markets; and EbixASP, a system for the P&C insurance brokers in the United States. In addition, the company offers business process outsourcing services that include providing domain intensive project management, time, and material based consulting engagements to clients; the creation and tracking of certificates of insurance issued in the United States and Australian markets; and the provision of claims adjudication and settlement, call center, and back office support, as well as a software-based service for the issuance of certificates of insurance and a service to track certificates of insurance for corporate clients in the United States and Australia. Further, the company offers carrier systems, which pertains to the designing and deploying on-demand back-end systems for P&C insurance companies. The company was formerly known as Delphi Systems, Inc. and changed its name to Ebix, Inc. in December 2003. Ebix, Inc. was founded in 1976 and is headquartered in Johns Creek, Georgia.
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