Manhattan Associates (MANH) vs. Its Competitors Critical Analysis

Manhattan Associates (NASDAQ:MANH) is one of 953 public companies in the “Software” industry, but how does it weigh in compared to its competitors? We will compare Manhattan Associates to related companies based on the strength of its valuation, profitability, dividends, analyst recommendations, risk, earnings and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations and price targets for Manhattan Associates and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Manhattan Associates	0	2	8	0	2.80
Manhattan Associates Competitors	5734	21479	44813	1493	2.57

Manhattan Associates presently has a consensus price target of $261.11, suggesting a potential upside of 2.16%. As a group, “Software” companies have a potential upside of 28.09%. Given Manhattan Associates’ competitors higher possible upside, analysts plainly believe Manhattan Associates has less favorable growth aspects than its competitors.

Risk & Volatility

Manhattan Associates has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500. Comparatively, Manhattan Associates’ competitors have a beta of 1.34, indicating that their average share price is 34% more volatile than the S&P 500.

Institutional & Insider Ownership

98.5% of Manhattan Associates shares are owned by institutional investors. Comparatively, 41.8% of shares of all “Software” companies are owned by institutional investors. 0.8% of Manhattan Associates shares are owned by company insiders. Comparatively, 19.9% 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 stock will outperform the market over the long term.

Profitability

This table compares Manhattan Associates and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Manhattan Associates	18.41%	98.67%	28.60%
Manhattan Associates Competitors	-612.69%	20.88%	-8.98%

Earnings and Valuation

This table compares Manhattan Associates and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Manhattan Associates	$1.08 billion	$219.95 million	71.59
Manhattan Associates Competitors	$1.81 billion	$385.92 million	108.96

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

Summary

Manhattan Associates competitors beat Manhattan Associates on 7 of the 13 factors compared.

About Manhattan Associates

Manhattan Associates, Inc. develops, sells, deploys, services, and maintains software solutions to manage supply chains, inventory, and omni-channel operations. It offers Warehouse Management Solution for managing goods and information across the distribution centers; Manhattan Active Warehouse Management, a cloud native and version less application for the associate; and Transportation Management Solution for helping shippers navigate their way through the demands and meet customer service expectations at the lowest possible freight costs; Manhattan SCALE, a portfolio of logistics execution solution; and Manhattan Active Omni, which offers order management, store inventory and fulfillment, POS, and customer engagement tools for enterprises and stores. The company also provides inventory optimization and allocation solutions; technology platform including Manhattan Active Platform solutions, a cloud-native product designed to provide version-less product access; maintenance services, which offers on-premises software licensees with software upgrades for additional or improved functionality and technological advances; and professional services, such as solutions planning and implementation, and related consulting services. In addition, it provides training and change management services; and resells computer hardware, radio frequency terminal networks, radio frequency identification chip readers, bar code printers and scanners, and other peripherals. The company offers products through direct sales personnel and partnership agreements with various organizations. It serves retail, consumer goods, food and grocery, logistics service providers, industrial and wholesale, high technology and electronics, life sciences, and government industries. The company operates in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Manhattan Associates, Inc. was founded in 1990 and is headquartered in Atlanta, Georgia.