Comparing QAD (QADA) and DealerTrack Technologies (TRAK)

DealerTrack Technologies (NASDAQ: TRAK) and QAD (NASDAQ:QADA) are both technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, institutional ownership, profitability and risk.

Dividends

QAD pays an annual dividend of $0.29 per share and has a dividend yield of 0.8%. DealerTrack Technologies does not pay a dividend. QAD pays out -30.9% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current ratings and recommmendations for DealerTrack Technologies and QAD, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DealerTrack Technologies 0 0 0 0 N/A
QAD 0 1 4 0 2.80

QAD has a consensus price target of $35.67, suggesting a potential downside of 6.02%. Given QAD’s higher possible upside, analysts plainly believe QAD is more favorable than DealerTrack Technologies.

Earnings and Valuation

This table compares DealerTrack Technologies and QAD’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
DealerTrack Technologies N/A N/A N/A N/A N/A
QAD $290.14 million 2.51 $10.69 million ($0.94) -40.37

QAD has higher revenue and earnings than DealerTrack Technologies.

Institutional and Insider Ownership

43.5% of QAD shares are held by institutional investors. 44.1% of QAD shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares DealerTrack Technologies and QAD’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DealerTrack Technologies -3.45% -3.48% -1.59%
QAD -5.98% -0.47% -0.20%

Summary

QAD beats DealerTrack Technologies on 9 of the 10 factors compared between the two stocks.

About DealerTrack Technologies

Dealertrack Technologies, Inc. provides Web-based software solutions and services. The Company provides solutions and services for segments of the automotive retail industry, including dealers, lenders, original equipment manufacturers (OEMs), third-party retailers, aftermarket providers and other service providers. Dealertrack operates the online credit application networks in the United States and Canada. The Company’s solutions includes Digital Marketing solutions, Dealer Management solutions, F&I solutions, Inventory solutions, Registration & Titling solutions, and Collateral Management solutions. Digital Marketing solutions include digital marketing tools, such as desktop and mobile Website design, search engine optimization (SEO), search engine marketing (SEM), social media and reputation management tools. Registration & Titling solutions include online and cross-state vehicle registration services.

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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