Determine (NASDAQ: QADA) and QAD Inc. Class A (NASDAQ:QADA) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, risk, earnings, valuation, analyst recommendations, dividends and institutional ownership.
This table compares Determine and QAD Inc. Class A’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|QAD Inc. Class A||-0.86%||-2.66%||-1.07%|
Insider & Institutional Ownership
14.1% of Determine shares are held by institutional investors. Comparatively, 45.7% of QAD Inc. Class A shares are held by institutional investors. 10.0% of Determine shares are held by company insiders. Comparatively, 43.7% of QAD Inc. Class A shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Risk and Volatility
Determine has a beta of 1.78, suggesting that its share price is 78% more volatile than the S&P 500. Comparatively, QAD Inc. Class A has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500.
This is a summary of current recommendations and price targets for Determine and QAD Inc. Class A, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|QAD Inc. Class A||0||0||3||0||3.00|
Determine currently has a consensus target price of $1.83, suggesting a potential upside of 138.10%. QAD Inc. Class A has a consensus target price of $60.67, suggesting a potential upside of 0.19%. Given Determine’s higher possible upside, equities analysts plainly believe Determine is more favorable than QAD Inc. Class A.
Valuation and Earnings
This table compares Determine and QAD Inc. Class A’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Determine||$28.12 million||0.41||-$9.94 million||($0.53)||-1.45|
|QAD Inc. Class A||$305.02 million||3.86||-$9.06 million||($0.47)||-128.83|
QAD Inc. Class A has higher revenue and earnings than Determine. QAD Inc. Class A is trading at a lower price-to-earnings ratio than Determine, indicating that it is currently the more affordable of the two stocks.
QAD Inc. Class A pays an annual dividend of $0.29 per share and has a dividend yield of 0.5%. Determine does not pay a dividend. QAD Inc. Class A pays out -61.7% of its earnings in the form of a dividend.
QAD Inc. Class A beats Determine on 13 of the 16 factors compared between the two stocks.
Determine Company Profile
Determine, Inc. provides software-as-a-service source-to-pay and enterprise contract lifecycle management (ECLM) solutions. The company offers Determine Cloud Platform, an open technology infrastructure for application in strategic sourcing, contract management, e-procurement, invoice management, financial management, supplier management, business, ECLM, and analytics. It also provides SmartContracts, a solution for the controlling of contract processes from request, authoring, negotiation, approval, and e-signature through ongoing obligations management, analysis, reporting, and renewals; SmartSource, an enterprise scale solution to support the processes of supplier on-boarding, supplier selection, and on-going supplier management; and SmartAnalytics, which delivers business insights and executive reporting. In addition, the company offers Configuration Solution, a patented configuration engine, which streamlines the management and dissemination of product information, enabling companies to accelerate the opportunity-to-order process for manufacturers, service providers, and financial services companies. Further, it provides various services, including implementations, configurations, system upgrades, migrations, and solution architecture services. The company serves industries, including insurance, pharmaceuticals, healthcare, retail, transportation, manufacturing, and financial services. It operates in the United States, France, the United Kingdom, Ireland, Switzerland, Norway, Canada, Australia, Singapore, Germany, the Netherlands, Italy, Bermuda, the United Arab Emirates, Denmark, China, Hong Kong, and Bulgaria. The company sells its products through direct sales force, as well as strategic and OEM partners. The company was formerly known as Selectica, Inc. and changed its name to Determine, Inc. in October 2015. Determine, Inc. was founded in 1996 and is headquartered in Carmel, Indiana.
QAD Inc. Class A Company Profile
QAD Inc. provides enterprise software solutions for manufacturing companies in the automotive, life sciences, consumer products, food and beverage, high technology, and industrial products industries worldwide. The company offers QAD Enterprise Applications, an integrated suite of software applications, which support the core business processes. Its QAD Enterprise Applications include software solutions, such as QAD Financials to manage and control finance and accounting processes; QAD Customer Management for manufacturers to acquire new customers; QAD Manufacturing, which supports manufacturing business processes; QAD Automation Solutions that improve manufacturers' material transaction processing; QAD Demand and Supply Chain Planning that fulfills materials planning and logistics requirements; QAD Supply Chain Execution that offers tools to support inventory and warehouse management; and QAD Transportation Management to manage and optimize outside carriers for shipments. The company's QAD Enterprise Applications also comprise suites, such as QAD Service and Support that handles service calls, manages service queues, and organizes mobile field resources; QAD Enterprise Asset Management to manage, maintain, and install capital equipment; Action Centers with Embedded Analytics; and QAD Analytics that provides data to measure performance. It also offers QAD Enterprise Quality Management that provides quality management and regulatory compliance solutions; QAD Interoperability, which integrates QAD Enterprise Applications with other non-QAD core business applications; and QAD Internationalization, which supports companies that manufacture and distribute their products worldwide. In addition, it provides customer support, product updates, maintenance, and professional services. The company markets its products through direct and indirect sales channels; and distributors and sales agents. QAD Inc. was founded in 1979 and is headquartered in Santa Barbara, California.
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