Critical Survey: QAD Inc. Class B (QADB) & Cyberark Software (CYBR)

QAD Inc. Class B (NASDAQ: QADB) and Cyberark Software (NASDAQ:CYBR) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, profitability, risk, analyst recommendations, valuation and dividends.

Valuation and Earnings

This table compares QAD Inc. Class B and Cyberark Software’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
QAD Inc. Class B $305.02 million 2.72 -$9.06 million N/A N/A
Cyberark Software $261.70 million 8.69 $16.01 million $0.73 87.59

Cyberark Software has lower revenue, but higher earnings than QAD Inc. Class B.

Dividends

QAD Inc. Class B pays an annual dividend of $0.24 per share and has a dividend yield of 0.6%. Cyberark Software does not pay a dividend.

Risk and Volatility

QAD Inc. Class B has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500. Comparatively, Cyberark Software has a beta of 2.05, suggesting that its stock price is 105% more volatile than the S&P 500.

Insider & Institutional Ownership

2.0% of QAD Inc. Class B shares are owned by institutional investors. Comparatively, 75.7% of Cyberark Software shares are owned by institutional investors. 67.4% of QAD Inc. Class B shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares QAD Inc. Class B and Cyberark Software’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
QAD Inc. Class B -1.59% -4.72% -1.88%
Cyberark Software 5.43% 7.28% 5.26%

Analyst Recommendations

This is a summary of recent ratings and price targets for QAD Inc. Class B and Cyberark Software, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
QAD Inc. Class B 0 0 0 0 N/A
Cyberark Software 0 7 10 0 2.59

Cyberark Software has a consensus price target of $58.63, indicating a potential downside of 8.31%. Given Cyberark Software’s higher possible upside, analysts plainly believe Cyberark Software is more favorable than QAD Inc. Class B.

Summary

Cyberark Software beats QAD Inc. Class B on 9 of the 12 factors compared between the two stocks.

QAD Inc. Class B Company Profile

QAD Inc. provides enterprise software solutions for manufacturing companies in the automotive, life sciences, consumer products, food and beverage, high technology, and industrial products industries worldwide. The company offers QAD Enterprise Applications, an integrated suite of software applications, which support the core business processes. Its QAD Enterprise Applications include software solutions, such as QAD Financials to manage and control finance and accounting processes; QAD Customer Management for manufacturers to acquire new customers; QAD Manufacturing, which supports manufacturing business processes; QAD Automation Solutions that improve manufacturers' material transaction processing; QAD Demand and Supply Chain Planning that fulfills materials planning and logistics requirements; QAD Supply Chain Execution that offers tools to support inventory and warehouse management; and QAD Transportation Management to manage and optimize outside carriers for shipments. The company's QAD Enterprise Applications also comprise suites, such as QAD Service and Support that handles service calls, manages service queues, and organizes mobile field resources; QAD Enterprise Asset Management to manage, maintain, and install capital equipment; Action Centers with Embedded Analytics; and QAD Analytics that provides data to measure performance. It also offers QAD Enterprise Quality Management that provides quality management and regulatory compliance solutions; QAD Interoperability, which integrates QAD Enterprise Applications with other non-QAD core business applications; and QAD Internationalization, which supports companies that manufacture and distribute their products worldwide. In addition, it provides customer support, product updates, maintenance, and professional services. The company markets its products through direct and indirect sales channels; and distributors and sales agents. QAD Inc. was founded in 1979 and is headquartered in Santa Barbara, California.

Cyberark Software Company Profile

CyberArk Software Ltd. develops, markets, and sells software-based security solutions that protect organizations from cyber attacks in the United States and internationally. The company offers privileged account security solution to secure, manage, and monitor account access and activities. Its privileged account security solution consists of Enterprise Password Vault that prevents user passwords and SSH keys; Privileged Session Manager that protects windows based systems, databases, virtual machines, network devices, Web sites, and SaaS applications; and Privileged Threat Analytics that enables to detect, alert, and respond to anomalous privileged activity. The company also provides Application Identity Manager, provides solutions for hard-coded passwords and embedded application credentials; Conjur, a secrets management solution integrates with the DevOps toolchain, as well as secures and manages secrets used by CI/CD tools such as Ansible, Chef, Jenkins and Puppet, and orchestration software such as Docker; and Endpoint Privilege Manager that offers application control software, as well as On-Demand Privileges Manager, secure Digital Vault, Web Management Interface, and Master Policy Engine and Discovery Engine. In addition, it offers Shared Technology; Sensitive Information Management Solution; and software maintenance and support, and consulting services. The company offers its products to financial services, manufacturing, insurance, healthcare, energy and utilities, transportation, retail, technology, and telecommunications industries, as well as government agencies through resellers and distributors. The company was founded in 1999 and is headquartered in Petach Tikva, Israel.

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