Intuit (NASDAQ:INTU) and QAD (NASDAQ:QADA) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, institutional ownership, valuation, earnings and analyst recommendations.
Volatility & Risk
Intuit has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500. Comparatively, QAD has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations for Intuit and QAD, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Intuit | 2 | 3 | 13 | 0 | 2.61 |
| QAD | 0 | 0 | 3 | 0 | 3.00 |
Intuit currently has a consensus target price of $366.5882, indicating a potential upside of 13.27%. QAD has a consensus target price of $51.00, indicating a potential upside of 19.27%. Given QAD's stronger consensus rating and higher probable upside, analysts plainly believe QAD is more favorable than Intuit.
Insider & Institutional Ownership
85.5% of Intuit shares are owned by institutional investors. Comparatively, 48.6% of QAD shares are owned by institutional investors. 4.1% of Intuit shares are owned by company insiders. Comparatively, 46.1% of QAD shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Dividends
Intuit pays an annual dividend of $2.36 per share and has a dividend yield of 0.7%. QAD pays an annual dividend of $0.29 per share and has a dividend yield of 0.7%. Intuit pays out 36.0% of its earnings in the form of a dividend. QAD pays out -36.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Profitability
This table compares Intuit and QAD's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Intuit | 23.78% | 40.79% | 22.22% |
| QAD | 0.06% | 0.51% | 0.20% |
Earnings & Valuation
This table compares Intuit and QAD's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Intuit | $7.68 billion | 11.05 | $1.83 billion | $6.56 | 49.40 |
| QAD | $310.77 million | 2.83 | $-15,950,000.00 | ($0.79) | -53.84 |
Intuit has higher revenue and earnings than QAD. QAD is trading at a lower price-to-earnings ratio than Intuit, indicating that it is currently the more affordable of the two stocks.
Summary
Intuit beats QAD on 10 of the 16 factors compared between the two stocks.
