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.
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.
This is a breakdown of recent ratings and target prices for QAD and Luxoft Holding, as reported by MarketBeat.com.
||Strong Buy Ratings
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.
This table compares QAD and Luxoft Holding’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Valuation & Earnings
This table compares QAD and Luxoft Holding’s gross revenue, earnings per share (EPS) and valuation.
||Earnings Per Share
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.
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.
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