Analyzing Envestnet (ENV) & QAD (QADB)

Envestnet (NYSE: ENV) and QAD (NASDAQ:QADB) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, institutional ownership and profitability.

Dividends

QAD pays an annual dividend of $0.24 per share and has a dividend yield of 0.8%. Envestnet does not pay a dividend. QAD pays out -24.0% of its earnings in the form of a dividend.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Envestnet $578.16 million 3.95 -$55.56 million ($1.23) -41.95
QAD $277.97 million 2.17 -$15.45 million ($1.00) -31.30

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

Profitability

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

Net Margins Return on Equity Return on Assets
Envestnet -8.15% 8.92% 4.24%
QAD -6.40% -2.06% -0.86%

Risk & Volatility

Envestnet has a beta of 1.96, indicating that its stock price is 96% more volatile than the S&P 500. Comparatively, QAD has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Envestnet 0 2 4 0 2.67
QAD 0 0 0 0 N/A

Envestnet currently has a consensus price target of $53.50, suggesting a potential upside of 3.68%. Given Envestnet’s higher probable upside, equities research analysts plainly believe Envestnet is more favorable than QAD.

Insider & Institutional Ownership

92.7% of Envestnet shares are held by institutional investors. Comparatively, 1.9% of QAD shares are held by institutional investors. 5.6% of Envestnet shares are held by company insiders. Comparatively, 67.4% of QAD shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Envestnet beats QAD on 9 of the 15 factors compared between the two stocks.

Envestnet Company Profile

Envestnet, Inc. is a provider of financial and wealth management technology and services to financial advisors, investors and financial service providers. The Company’s segments are Envestnet and Envestnet Yodlee. Its Envestnet segment provides unified wealth management software and services empowering financial advisors and institutions. Its Envestnet Yodlee segment is a data aggregation and data analytics platform. Its services and related technology are provided through Envestnet’s wealth management software, Envestnet PMC, Envestnet Tamarac, Vantage Reporting Solution, Envestnet WMS, Envestnet Placemark, Envestnet Retirement Solutions, Envestnet Yodlee and Envestnet Finance Logix. It operates Registered Investment Advisors (RIAs) and a registered broker-dealer. Its centrally-hosted technology platform services include risk assessment and selection of investment strategies and solutions, asset allocation models, and research and due diligence.

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.

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