Twilio (NYSE:TWLO) and QAD (NASDAQ:QADB) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.

Volatility & Risk

Twilio has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500. Comparatively, QAD has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500.

Insider & Institutional Ownership

86.8% of Twilio shares are owned by institutional investors. Comparatively, 1.9% of QAD shares are owned by institutional investors. 10.9% of Twilio shares are owned by insiders. Comparatively, 67.4% of QAD shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Twilio and QAD, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Twilio 0 6 15 0 2.71
QAD 0 0 1 0 3.00

Twilio presently has a consensus target price of $153.00, indicating a potential downside of 19.14%. Given Twilio’s higher probable upside, equities research analysts clearly believe Twilio is more favorable than QAD.

Profitability

This table compares Twilio and QAD’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Twilio -28.85% -5.06% -4.23%
QAD -5.13% -3.82% -1.53%

Earnings and Valuation

This table compares Twilio and QAD’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Twilio $1.13 billion 23.30 -$307.06 million ($1.83) -103.40
QAD $310.77 million 1.84 -$15.95 million N/A N/A

QAD has lower revenue, but higher earnings than Twilio.

Summary

QAD beats Twilio on 7 of the 13 factors compared between the two stocks.

Twilio Company Profile

Twilio Inc. provides a cloud communications platform that enables developers to build, scale, and operate communications within software applications in the United States and internationally. The company's programmable communications cloud provides a set of application programming interfaces that enable developers to embed voice, messaging, and video capabilities into their applications. Twilio Inc. was founded in 2008 and is headquartered in San Francisco, California.

QAD Company Profile

QAD Inc. provides enterprise software solutions for manufacturing companies in the automotive, life sciences, consumer products, food and beverage, high technology, and industrial products industries worldwide. The company offers QAD Cloud ERP and QAD Enterprise Applications, an integrated suite of software applications, which support the core business processes. Its QAD Enterprise Applications include software solutions, such as QAD Financials to manage and control finance and accounting processes; QAD Customer Management for manufacturers to acquire new customers; QAD Manufacturing, which supports manufacturing business processes; QAD Automation Solutions that improve manufacturers' material transaction processing; QAD Demand and Supply Chain Planning that fulfills materials planning and logistics requirements; QAD Supply Chain Execution that offers tools to support inventory and warehouse management; and QAD Transportation Management to manage and optimize outside carriers for shipments. The company's QAD Enterprise Applications also comprise QAD Service and Support that handles service calls, manages service queues, and organizes mobile field resources; QAD Enterprise Asset Management to manage, maintain, and install capital equipment; Action Centers with Embedded Analytics; and QAD Analytics that provides data to measure performance. It also offers QAD Enterprise Quality Management that provides quality management and regulatory compliance solutions; QAD Interoperability, which integrates QAD Enterprise Applications with other non-QAD core business applications; and QAD Internationalization, which supports companies that manufacture and distribute their products worldwide. In addition, it provides customer support, product updates, maintenance, and professional services. The company markets its products through direct and indirect sales channels; and distributors and sales agents. QAD Inc. was founded in 1979 and is headquartered in Santa Barbara, California.

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