Kinaxis (KXSCF) and Its Competitors Critical Analysis

Kinaxis (OTCMKTS:KXSCF) is one of 959 public companies in the “Software” industry, but how does it weigh in compared to its peers? We will compare Kinaxis to similar companies based on the strength of its dividends, earnings, analyst recommendations, risk, profitability, institutional ownership and valuation.

Earnings and Valuation

This table compares Kinaxis and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Kinaxis	$548.03 million	$70.70 million	48.00
Kinaxis Competitors	$1.80 billion	$386.73 million	102.30

Kinaxis’ peers have higher revenue and earnings than Kinaxis. Kinaxis 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.

Analyst Ratings

This is a summary of current recommendations for Kinaxis and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kinaxis	0	0	4	0	3.00
Kinaxis Competitors	5502	21144	44136	1450	2.58

As a group, “Software” companies have a potential upside of 291.60%. Given Kinaxis’ peers higher possible upside, analysts plainly believe Kinaxis has less favorable growth aspects than its peers.

Profitability

This table compares Kinaxis and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kinaxis	14.42%	20.69%	11.94%
Kinaxis Competitors	-628.28%	30.28%	-8.95%

Insider & Institutional Ownership

42.2% of shares of all “Software” companies are owned by institutional investors. 19.8% of shares of all “Software” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Kinaxis peers beat Kinaxis on 8 of the 12 factors compared.

About Kinaxis

Kinaxis Inc. provides cloud-based subscription software for supply chain operations in the United States, Europe, Asia, and Canada. It offers RapidResponse, a cloud-based platform, which provides advanced planning, sales and operation planning, supply and demand planning, inventory management, and command and control center services. The company also provides strategic services, such as digital business transformation, advanced analytics, and digital innovation and acceleration services; implementation, including agile implementation methodology, RapidStart, sustainment, and rollout services; and continuous learning services consisting of Kinaxis learning center, custom learning programs, and certification, as well as support services. It serves aerospace and defense, automotive, consumer products, high-tech and electronics, industrial, life sciences, logistics, and retail industries. The company was formerly known as Webplan Inc. and changed its name to Kinaxis Inc. in May 2005. Kinaxis Inc. was founded in 1984 and is headquartered in Ottawa, Canada.