DealerTrack Technologies (NASDAQ: TRAK) and QAD (NASDAQ:QADB) are both technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, valuation, earnings, profitability, institutional ownership and dividends.
Valuation & Earnings
This table compares DealerTrack Technologies and QAD’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|QAD||$277.97 million||2.17||-$15.45 million||($1.03)||-30.39|
DealerTrack Technologies has higher earnings, but lower revenue than QAD. QAD is trading at a lower price-to-earnings ratio than DealerTrack Technologies, indicating that it is currently the more affordable of the two stocks.
QAD pays an annual dividend of $0.24 per share and has a dividend yield of 0.8%. DealerTrack Technologies does not pay a dividend. QAD pays out -23.3% of its earnings in the form of a dividend.
Insider and Institutional Ownership
1.9% of QAD 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, endowments and large money managers believe a stock is poised for long-term growth.
This table compares DealerTrack Technologies and QAD’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings and recommmendations for DealerTrack Technologies and QAD, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
QAD beats DealerTrack Technologies on 7 of the 9 factors compared between the two stocks.
DealerTrack Technologies Company Profile
Dealertrack Technologies, Inc. provides Web-based software solutions and services. The Company provides solutions and services for segments of the automotive retail industry, including dealers, lenders, original equipment manufacturers (OEMs), third-party retailers, aftermarket providers and other service providers. Dealertrack operates the online credit application networks in the United States and Canada. The Company’s solutions includes Digital Marketing solutions, Dealer Management solutions, F&I solutions, Inventory solutions, Registration & Titling solutions, and Collateral Management solutions. Digital Marketing solutions include digital marketing tools, such as desktop and mobile Website design, search engine optimization (SEO), search engine marketing (SEM), social media and reputation management tools. Registration & Titling solutions include online and cross-state vehicle registration services.
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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