Reviewing Model N Inc. (MODN)’s and BlackLine Inc. (NASDAQ:BL)’s results

This is therefore a comparing of the institutional ownership, profitability, analyst recommendations, risk, dividends, earnings and valuation in Model N Inc. (NYSE:MODN) and BlackLine Inc. (NASDAQ:BL). The two are both Application Software companies that compete with one another.

Earnings and Valuation

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Model N Inc. 150.64M 3.54 27.68M -0.93 0.00
BlackLine Inc. 216.92M 12.30 29.25M -0.49 0.00

In table 1 we can see Model N Inc. and BlackLine Inc.’s gross revenue, earnings per share (EPS) and valuation.

Profitability

Table 2 provides us the return on equity, net margins and return on assets of both companies.

Net Margins Return on Equity Return on Assets
Model N Inc. -18.37% -69.8% -16.5%
BlackLine Inc. -13.48% -8.2% -5.6%

Liquidity

1.2 and 1.2 are the respective Current Ratio and a Quick Ratio of Model N Inc. Its rival BlackLine Inc.’s Current and Quick Ratios are 1.4 and 1.4 respectively. BlackLine Inc. has a better chance of clearing its pay short and long-term debts than Model N Inc.

Analyst Recommendations

The next table highlights the delivered recommendations and ratings for Model N Inc. and BlackLine Inc.

Sell Ratings Hold Ratings Buy Ratings Rating Score
Model N Inc. 0 0 1 3.00
BlackLine Inc. 0 0 0 0.00

Model N Inc. has a 36.01% upside potential and a consensus target price of $23.

Institutional and Insider Ownership

Model N Inc. and BlackLine Inc. has shares owned by institutional investors as follows: 72% and 84.5%. Insiders owned 9.7% of Model N Inc. shares. Competitively, insiders own roughly 0.2% of BlackLine Inc.’s shares.

Performance

In this table we show the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
Model N Inc. 6.77% 9.24% -12.22% -17.41% -8.94% -6.92%
BlackLine Inc. -5.76% -10.58% -27.23% -9.32% 17.61% 23.17%

For the past year Model N Inc. has -6.92% weaker performance while BlackLine Inc. has 23.17% stronger performance.

Summary

On 9 of the 11 factors BlackLine Inc. beats Model N Inc.

Model N, Inc. provides revenue management cloud solutions for the life science and technology industries. The company develops applications, such as managed care and government pricing for life science companies; and channel incentives based on design wins for technology companies. It offers Revenue Enterprise Cloud, a set of transactional applications that serve as a system of record for, and automate the execution of revenue management processes, such as pricing, contracting, compliance, incentive, and rebate management. This suite includes price management, deal management, contract management, incentive and rebate management, and regulatory compliance management applications. The company also provides Revenue Intelligence Cloud, a range of intelligence applications that provide the analytical tools insights to define and optimize revenue management strategies. In addition, it offers Revvy Revenue Management, a set of multi-tenant cloud applications, which provides customers with predictable pricing, elastic infrastructures, and ease of implementation for the pharmaceutical, manufacturing, medical devices, and semiconductor and component manufacturing industries. This suite includes products, such as configure, price, and quote; global price management; and sales. Further, the company provides implementation, managed, strategic, and customer support services. It primarily serves large and mid-sized organizations worldwide through its direct sales force. As of September 30, 2015, the company had 84 license and subscription customers. Model N, Inc. was founded in 1999 and is headquartered in Redwood City, California, with additional offices in the United States, India, the United Kingdom, and Switzerland.

BlackLine, Inc. provides financial accounting close solutions delivered as a Software as a Service in the United States and internationally. Its solutions enables its customers to address various aspects of their financial closing process, including account reconciliations, variance analysis of account balances, and journal entry capabilities, as well as a range of data matching capabilities. The companyÂ’s solutions comprise reconciliation management solution that consists of account reconciliations, transaction matching, consolidation integrity manager, and daily reconciliations; and a framework for the reconciliation process, which allows users to build integrity checks and automation into the entire end-to-end work flow. Its solutions also comprise financial close management that includes task management, journal entry, and variance analysis; and allows customers to manage the key steps within the close, applying automation where possible, and ensure that tasks are properly completed and reviewed. In addition, the company provides intercompany hub solution comprising intercompany workflow and processing, and netting and settlement, as well as manages the intercompany transaction lifecycle within its platform. Further, it offers a range of key performance indicators that enable clients to compare metrics across their own operating entities, set goals, and gauge their performance over time; and services, such as implementation, support, customer success, and training services. The company sells its platform, primarily through direct sales force to various industries, including consumer/retail, healthcare, financial services, technology, industrial/energy, and services. BlackLine, Inc. was founded in 2001 and is headquartered in Los Angeles, California.