Model N (MODN) vs. Its Peers Critical Analysis
Model N (NYSE: MODN) is one of 97 public companies in the “Enterprise Software” industry, but how does it weigh in compared to its peers? We will compare Model N to related companies based on the strength of its institutional ownership, dividends, profitability, valuation, analyst recommendations, earnings and risk.
Insider and Institutional Ownership
65.9% of Model N shares are held by institutional investors. Comparatively, 60.4% of shares of all “Enterprise Software” companies are held by institutional investors. 20.4% of Model N shares are held by company insiders. Comparatively, 22.5% of shares of all “Enterprise Software” companies are held 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 Model N and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Model N Competitors||-24.31%||-204.97%||-7.06%|
Risk and Volatility
Model N has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, Model N’s peers have a beta of 1.13, suggesting that their average stock price is 13% more volatile than the S&P 500.
Earnings and Valuation
This table compares Model N and its peers gross revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Model N||$124.07 million||-$29.98 million||-10.74|
|Model N Competitors||$1.27 billion||$348.15 million||37.10|
Model N’s peers have higher revenue and earnings than Model N. Model N 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.
This is a summary of recent ratings and recommmendations for Model N and its peers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Model N Competitors||342||2029||3872||107||2.59|
Model N presently has a consensus price target of $13.20, indicating a potential downside of 8.97%. As a group, “Enterprise Software” companies have a potential upside of 4.00%. Given Model N’s peers higher possible upside, analysts clearly believe Model N has less favorable growth aspects than its peers.
Model N peers beat Model N on 7 of the 12 factors compared.
Model N Company Profile
Model N, Inc. is a provider of revenue management solutions for life science and technology companies. The Company’s solutions enable its customers to maximize revenues and reduce revenue compliance risk by transforming their revenue life cycle from a series of tactical, disjointed operations into a strategic end-to-end process. The Company’s solutions include Revenue Enterprise Cloud, Revenue Intelligence Cloud and Revvy Revenue Management. The Company provides solutions that span the organizational and operational boundaries of functions, such as sales, marketing and finance, and serve as a system of record for revenue management processes, including pricing, contracts, rebates, incentives and regulatory compliance. The Company’s application suites are designed to work with enterprise resource planning (ERP) and customer relationship management (CRM) applications. The Company also offers implementation services, managed services, strategic services and customer support.
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