Head to Head Analysis: Model N (MODN) & 21Vianet Group (NASDAQ:VNET)

21Vianet Group (NYSE: MODN) and Model N (NYSE:MODN) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.

Valuation and Earnings

This table compares 21Vianet Group and Model N’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
21Vianet Group $521.45 million 2.09 -$118.76 million ($0.24) -40.63
Model N $131.17 million 4.05 -$39.54 million ($0.83) -20.48

Model N has lower revenue, but higher earnings than 21Vianet Group. 21Vianet Group is trading at a lower price-to-earnings ratio than Model N, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

30.5% of 21Vianet Group shares are held by institutional investors. Comparatively, 68.9% of Model N shares are held by institutional investors. 12.1% of 21Vianet Group shares are held by company insiders. Comparatively, 18.9% of Model N shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for 21Vianet Group and Model N, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
21Vianet Group 0 0 1 0 3.00
Model N 0 2 3 0 2.60

21Vianet Group currently has a consensus target price of $9.50, suggesting a potential downside of 2.56%. Model N has a consensus target price of $22.67, suggesting a potential upside of 33.33%. Given Model N’s higher possible upside, analysts clearly believe Model N is more favorable than 21Vianet Group.

Profitability

This table compares 21Vianet Group and Model N’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
21Vianet Group -18.44% 2.05% 0.98%
Model N -21.89% -61.62% -14.54%

Risk and Volatility

21Vianet Group has a beta of 1.92, meaning that its stock price is 92% more volatile than the S&P 500. Comparatively, Model N has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500.

21Vianet Group Company Profile

21Vianet Group, Inc. provides carrier-neutral Internet data center services to Internet companies, government entities, blue-chip enterprises, and small-to mid-sized enterprises in the People's Republic of China. It offers hosting and related services to house servers and networking equipment in its data centers, and connects them through a data transmission network; and other hosting related value-added services. Its hosting and related services include managed hosting services that offer data center space to house its customers' servers and networking equipment, and provide tailored server administration services; and interconnectivity services that enable customers to connect their servers with Internet backbones and other networks through its border gateway protocol network or single-line, dual-line, or multiple-line network. Its hosting and related services also comprise content delivery network services that optimize the speed and security of data transmission; cloud services that enable businesses to run their applications over the Internet using its IT infrastructure; virtual private network services; and other value-added services, such as firewall, server load balancing, data backup and recovery, data center management, server management, and backup server services. In addition, the company provides traffic charts and analysis, gateway monitoring for servers, domain name system setup, defense mechanism against distributed denial of service attacks, basic setting of switches and routers, and virus protections; and managed network services consisting of hosting area network, and route optimization services. As of December 31, 2017, it operated 19 self-built and 38 partnered data centers located in approximately 20 cities with 29,080 cabinets. It has a strategic partnership with Microsoft Corporation. 21Vianet Group, Inc. was founded in 1999 and is headquartered in Beijing, the People's Republic of China.

Model N Company Profile

Model N, Inc. provides revenue management cloud solutions for the life sciences, technology, and manufacturing companies. The company's cloud-based revenue management solutions include Revenue Cloud for Pharma, Revenue Cloud for Med Tech, Revenue Cloud for High Tech, and Revenue Cloud. It develops software applications, such as managed care and government pricing for life science companies; and channel incentives for technology companies. The company also offers revenue management processes, such as pricing, contracting, rebates, incentives, channel management, and regulatory compliance. In addition, Model N, Inc. provides implementation, managed, strategic, and customer support services. It primarily serves large and mid-sized organizations worldwide through its direct sales force. Model N, Inc. was founded in 1999 and is headquartered in San Mateo, California, with additional offices in the United States, India, and Switzerland.

Receive News & Ratings for 21Vianet Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for 21Vianet Group and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply