QAD (QADB) versus Luxoft Holding (LXFT) Head-To-Head Comparison

QAD (NASDAQ: QADB) and Luxoft Holding (NYSE:LXFT) are both small-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Dividends

QAD pays an annual dividend of $0.24 per share and has a dividend yield of 0.8%. Luxoft Holding does not pay a dividend. QAD pays out -25.5% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for QAD and Luxoft Holding, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
QAD 0 0 1 0 3.00
Luxoft Holding 1 4 4 0 2.33

QAD presently has a consensus target price of $33.00, indicating a potential upside of 7.84%. Luxoft Holding has a consensus target price of $65.00, indicating a potential upside of 44.28%. Given Luxoft Holding’s higher possible upside, analysts plainly believe Luxoft Holding is more favorable than QAD.

Profitability

This table compares QAD and Luxoft Holding’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
QAD -5.98% -0.48% -0.21%
Luxoft Holding 6.72% 18.90% 13.83%

Valuation & Earnings

This table compares QAD and Luxoft Holding’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
QAD $290.14 million 2.03 $10.69 million ($0.94) -32.55
Luxoft Holding $816.75 million 1.22 $89.07 million $1.61 27.98

Luxoft Holding has higher revenue and earnings than QAD. QAD is trading at a lower price-to-earnings ratio than Luxoft Holding, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

QAD has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500. Comparatively, Luxoft Holding has a beta of 1.47, suggesting that its stock price is 47% more volatile than the S&P 500.

Institutional & Insider Ownership

1.8% of QAD shares are held by institutional investors. Comparatively, 78.8% of Luxoft Holding shares are held by institutional investors. 67.4% of QAD shares 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.

Summary

Luxoft Holding beats QAD on 10 of the 15 factors compared between the two stocks.

QAD Company Profile

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.

Luxoft Holding Company Profile

Luxoft Holding, Inc., is a provider of software development services and information technology (IT) solutions to a global client base consisting primarily of large multinational corporations. The Company’s software development services consist of custom software development and support, product engineering and testing, and technology consulting. The Company’s solutions are based on its proprietary products and platforms that directly impact its clients’ business outcomes and efficiently deliver continuous innovation. The Company develops its solutions and delivers its services from 34 cities with delivery centers worldwide. Its products and platforms include Horizon, SuperCloud, Twister, iStockTrack, TEORA, Populus, AllView, CVNAR and Retail Engagement Suite (RES) in Internet of Things (IoT) space.

Receive News & Ratings for QAD Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for QAD Inc. and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply