Contrasting ModusLink Global Solutions (MLNK) and Its Competitors

ModusLink Global Solutions (NASDAQ: MLNK) is one of 182 publicly-traded companies in the “IT Services & Consulting” industry, but how does it weigh in compared to its peers? We will compare ModusLink Global Solutions to related businesses based on the strength of its risk, valuation, analyst recommendations, earnings, dividends, profitability and institutional ownership.

Earnings and Valuation

This table compares ModusLink Global Solutions and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
ModusLink Global Solutions $436.62 million -$25.82 million -5.39
ModusLink Global Solutions Competitors $2.84 billion $293.72 million 332.46

ModusLink Global Solutions’ peers have higher revenue and earnings than ModusLink Global Solutions. ModusLink Global Solutions 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.

Risk & Volatility

ModusLink Global Solutions has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500. Comparatively, ModusLink Global Solutions’ peers have a beta of 1.11, meaning that their average stock price is 11% more volatile than the S&P 500.

Profitability

This table compares ModusLink Global Solutions and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ModusLink Global Solutions -5.39% -34.16% -7.72%
ModusLink Global Solutions Competitors -23.41% -279.96% -4.80%

Analyst Recommendations

This is a breakdown of recent ratings for ModusLink Global Solutions and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ModusLink Global Solutions 0 1 0 0 2.00
ModusLink Global Solutions Competitors 772 4612 7394 164 2.54

ModusLink Global Solutions currently has a consensus target price of $8.00, indicating a potential upside of 261.99%. As a group, “IT Services & Consulting” companies have a potential downside of 11.13%. Given ModusLink Global Solutions’ higher possible upside, equities analysts plainly believe ModusLink Global Solutions is more favorable than its peers.

Insider and Institutional Ownership

56.2% of ModusLink Global Solutions shares are held by institutional investors. Comparatively, 63.3% of shares of all “IT Services & Consulting” companies are held by institutional investors. 1.3% of ModusLink Global Solutions shares are held by company insiders. Comparatively, 16.6% of shares of all “IT Services & Consulting” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

ModusLink Global Solutions peers beat ModusLink Global Solutions on 10 of the 13 factors compared.

About ModusLink Global Solutions

ModusLink Global Solutions, Inc. is a provider of supply chain and logistics services through its subsidiaries, ModusLink Corporation and ModusLink PTS, Inc. The Company provides services to companies in the consumer electronics, communications, computing, software, storage and retail industries. The Company operates through four segments: Americas, Asia, Europe and e-business. As of July 31, 2016, the Company operated in over 20 sites across North America, Europe and the Asia Pacific region. The Company’s Supply Chain Business operation’s solutions include material planning and factory supply; value-added warehousing and distribution; aftermarket services, including product returns management and product repair and recovery, and e-business, including e-commerce, contact center, entitlement management and financial management.

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