Critical Comparison: Kinaxis (KXSCF) and Its Peers

Kinaxis (OTCMKTS:KXSCF) is one of 958 publicly-traded companies in the “Software” industry, but how does it contrast to its competitors? We will compare Kinaxis to similar businesses based on the strength of its analyst recommendations, dividends, profitability, earnings, valuation, institutional ownership and risk.

Insider & Institutional Ownership

42.1% 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 hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Kinaxis and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Kinaxis	$548.03 million	$70.70 million	49.86
Kinaxis Competitors	$1.84 billion	$388.38 million	102.48

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

Profitability

This table compares Kinaxis and its competitors’ 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	-629.81%	30.36%	-8.98%

Analyst Recommendations

This is a summary of recent ratings and price targets for Kinaxis and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kinaxis	0	0	4	0	3.00
Kinaxis Competitors	5503	21138	44135	1453	2.58

As a group, “Software” companies have a potential upside of 289.21%. Given Kinaxis’ competitors higher probable upside, analysts plainly believe Kinaxis has less favorable growth aspects than its competitors.

Summary

Kinaxis competitors 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.