Critical Analysis: Kinaxis (KXSCF) & Its Peers

Kinaxis (OTCMKTS:KXSCF) is one of 957 publicly-traded companies in the “Software” industry, but how does it compare to its rivals? We will compare Kinaxis to related businesses based on the strength of its risk, valuation, earnings, profitability, dividends, institutional ownership and analyst recommendations.

Valuation and Earnings

This table compares Kinaxis and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Kinaxis	$548.03 million	$70.70 million	50.40
Kinaxis Competitors	$1.80 billion	$388.72 million	72.33

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Kinaxis and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kinaxis	0	0	4	0	3.00
Kinaxis Competitors	5273	20813	43374	1421	2.58

As a group, “Software” companies have a potential upside of 269.58%. Given Kinaxis’ rivals higher possible upside, analysts clearly believe Kinaxis has less favorable growth aspects than its rivals.

Insider and Institutional Ownership

42.4% of shares of all “Software” companies are owned by institutional investors. 20.1% of shares of all “Software” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kinaxis	14.42%	20.69%	11.94%
Kinaxis Competitors	-616.99%	44.35%	-8.09%

Summary

Kinaxis rivals 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.