Critical Analysis: Logility Supply Chain Solutions (LGTY) vs. Its Rivals

Logility Supply Chain Solutions (NASDAQ:LGTY) is one of 464 publicly-traded companies in the “Prepackaged software” industry, but how does it compare to its rivals? We will compare Logility Supply Chain Solutions to related companies based on the strength of its dividends, institutional ownership, profitability, earnings, analyst recommendations, valuation and risk.

Insider and Institutional Ownership

77.0% of Logility Supply Chain Solutions shares are owned by institutional investors. Comparatively, 56.9% of shares of all “Prepackaged software” companies are owned by institutional investors. 11.4% of Logility Supply Chain Solutions shares are owned by company insiders. Comparatively, 19.0% of shares of all “Prepackaged software” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for Logility Supply Chain Solutions and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Logility Supply Chain Solutions	0	2	0	0	2.00
Logility Supply Chain Solutions Competitors	2464	16780	32627	939	2.61

As a group, “Prepackaged software” companies have a potential upside of 11.28%. Given Logility Supply Chain Solutions’ rivals stronger consensus rating and higher possible upside, analysts plainly believe Logility Supply Chain Solutions has less favorable growth aspects than its rivals.

Dividends

Logility Supply Chain Solutions pays an annual dividend of $0.44 per share and has a dividend yield of 3.1%. Logility Supply Chain Solutions pays out 231.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Prepackaged software” companies pay a dividend yield of 1.0% and pay out 38.7% of their earnings in the form of a dividend.

Risk and Volatility

Logility Supply Chain Solutions has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500. Comparatively, Logility Supply Chain Solutions’ rivals have a beta of 0.60, suggesting that their average share price is 40% less volatile than the S&P 500.

Earnings and Valuation

This table compares Logility Supply Chain Solutions and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Logility Supply Chain Solutions	$102.51 million	$11.37 million	74.21
Logility Supply Chain Solutions Competitors	$2.12 billion	$315.15 million	-706.19

Logility Supply Chain Solutions’ rivals have higher revenue and earnings than Logility Supply Chain Solutions. Logility Supply Chain Solutions is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Logility Supply Chain Solutions and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Logility Supply Chain Solutions	6.15%	7.03%	5.02%
Logility Supply Chain Solutions Competitors	-66.36%	-38.75%	-6.86%

Summary

Logility Supply Chain Solutions rivals beat Logility Supply Chain Solutions on 8 of the 15 factors compared.

About Logility Supply Chain Solutions

Logility Supply Chain Solutions Inc. is a provider of AI-first supply chain management solutions engineered to help organizations build sustainable digital supply chains. Logility Supply Chain Solutions Inc., formerly known as American Software Inc., is based in ATLANTA.