American Software (NASDAQ: AMSWA) is one of 105 publicly-traded companies in the “Enterprise Software” industry, but how does it compare to its competitors? We will compare American Software to similar companies based on the strength of its dividends, analyst recommendations, valuation, institutional ownership, earnings, risk and profitability.
Risk & Volatility
American Software has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500. Comparatively, American Software’s competitors have a beta of 1.05, meaning that their average share price is 5% more volatile than the S&P 500.
Earnings & Valuation
This table compares American Software and its competitors top-line revenue, earnings per share and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|American Software||$106.29 million||$14.62 million||22.73|
|American Software Competitors||$1.82 billion||$300.56 million||34.62|
American Software’s competitors have higher revenue and earnings than American Software. American Software 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.
This is a summary of current ratings for American Software and its competitors, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|American Software Competitors||364||2182||4114||119||2.59|
American Software presently has a consensus price target of $12.25, suggesting a potential upside of 3.64%. As a group, “Enterprise Software” companies have a potential upside of 0.27%. Given American Software’s stronger consensus rating and higher possible upside, equities analysts plainly believe American Software is more favorable than its competitors.
Institutional and Insider Ownership
75.6% of American Software shares are owned by institutional investors. Comparatively, 60.9% of shares of all “Enterprise Software” companies are owned by institutional investors. 13.9% of American Software shares are owned by company insiders. Comparatively, 21.9% of shares of all “Enterprise Software” companies 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.
This table compares American Software and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|American Software Competitors||-25.62%||-208.27%||-7.97%|
American Software pays an annual dividend of $0.44 per share and has a dividend yield of 3.7%. American Software pays out 84.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Enterprise Software” companies pay a dividend yield of 0.8% and pay out 31.8% of their earnings in the form of a dividend.
American Software beats its competitors on 8 of the 15 factors compared.
About American Software
American Software, Inc. (American Software) develops, markets and supports a portfolio of software and services that delivers enterprise management, supply chain and retail planning solutions to the marketplace. The Company operates through three business segments: Supply Chain Management (SCM), Enterprise Resource Planning (ERP) and Information Technology (IT) Consulting. The SCM segment consists of Logility, Inc. and its subsidiary, Demand Management, Inc. (DMI), both of which provide supply chain and retail planning solutions to trading partners. The ERP segment consist of American Software ERP, which provides business software for manufacturers and distributors, and New Generation Computing, Inc. (NGC), which provides industry-specific business software to both retailers and manufacturers in the apparel, footwear, sewn products and furniture industries. The IT Consulting segment consists of The Proven Method, Inc., an IT staffing and consulting services firm.
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