Kinaxis (KXSCF) vs. The Competition Critical Contrast

Kinaxis (OTCMKTS:KXSCF) is one of 958 public companies in the “Software” industry, but how does it weigh in compared to its peers? We will compare Kinaxis to similar companies based on the strength of its institutional ownership, risk, profitability, valuation, analyst recommendations, earnings and dividends.

Profitability

This table compares Kinaxis and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kinaxis	14.42%	20.95%	12.05%
Kinaxis Competitors	-628.30%	26.35%	-9.06%

Insider and Institutional Ownership

42.3% of shares of all “Software” companies are owned by institutional investors. 19.7% of shares of all “Software” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Kinaxis and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kinaxis	0	0	4	0	3.00
Kinaxis Competitors	5521	21153	44175	1458	2.57

As a group, “Software” companies have a potential upside of 283.37%. Given Kinaxis’ peers higher possible upside, analysts plainly believe Kinaxis has less favorable growth aspects than its peers.

Earnings and Valuation

This table compares Kinaxis and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Kinaxis	$548.03 million	$70.70 million	50.80
Kinaxis Competitors	$1.81 billion	$387.49 million	105.24

Kinaxis’ peers have higher revenue and earnings than Kinaxis. Kinaxis is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Kinaxis peers beat Kinaxis on 8 of the 12 factors compared.

Kinaxis Company Profile

Kinaxis Inc. provides cloud-based subscription software for supply chain operations in the United States, Europe, Asia, and Canada. It offers RapidResponse, a cloud-based platform, which provides advanced planning, sales and operation planning, supply and demand planning, inventory management, and command and control center services. The company also provides strategic services, such as digital business transformation, advanced analytics, and digital innovation and acceleration services; implementation, including agile implementation methodology, RapidStart, sustainment, and rollout services; and continuous learning services consisting of Kinaxis learning center, custom learning programs, and certification, as well as support services. It serves aerospace and defense, automotive, consumer products, high-tech and electronics, industrial, life sciences, logistics, and retail industries. The company was formerly known as Webplan Inc. and changed its name to Kinaxis Inc. in May 2005. Kinaxis Inc. was founded in 1984 and is headquartered in Ottawa, Canada.