Model N Inc. (MODN)’s Financial Results Comparing With Gridsum Holding Inc. (NASDAQ:GSUM)

Model N Inc. (NYSE:MODN) and Gridsum Holding Inc. (NASDAQ:GSUM), both competing one another are Application Software companies. We will compare their risk, analyst recommendations, profitability, dividends, institutional ownership, earnings and valuation.

Valuation and Earnings

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Model N Inc.	146.25M	4.11	29.69M	-0.90	0.00
Gridsum Holding Inc.	N/A	0.00	N/A	-1.60	0.00

Table 1 showcases the gross revenue, earnings per share (EPS) and valuation of Model N Inc. and Gridsum Holding Inc.

Profitability

Table 2 represents Model N Inc. (NYSE:MODN) and Gridsum Holding Inc. (NASDAQ:GSUM)’s return on equity, return on assets and net margins.

	Net Margins	Return on Equity	Return on Assets
Model N Inc.	-20.30%	-64.8%	-16.5%
Gridsum Holding Inc.	0.00%	-57.2%	-24.6%

Liquidity

Model N Inc. has a Current Ratio of 1.4 and a Quick Ratio of 1.4. Competitively, Gridsum Holding Inc.’s Current Ratio is 2 and has 2 Quick Ratio. Gridsum Holding Inc.’s better ability to pay short and long-term obligations than Model N Inc.

Analyst Recommendations

The Ratings and Recommendations for Model N Inc. and Gridsum Holding Inc. are featured in the next table.

	Sell Ratings	Hold Ratings	Buy Ratings	Rating Score
Model N Inc.	0	0	2	3.00
Gridsum Holding Inc.	0	0	0	0.00

Model N Inc.’s upside potential is 20.80% at a $23 consensus price target.

Insider & Institutional Ownership

The shares of both Model N Inc. and Gridsum Holding Inc. are owned by institutional investors at 75% and 40.9% respectively. Model N Inc.’s share held by insiders are 11.2%. Comparatively, insiders own roughly 5.3% of Gridsum Holding Inc.’s shares.

Performance

In this table we provide 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.	-0.17%	18.68%	25.24%	3.73%	1.59%	30.16%
Gridsum Holding Inc.	1.29%	79.09%	-6.86%	-33.22%	-61.6%	76.68%

For the past year Model N Inc.’s stock price has smaller growth than Gridsum Holding 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.

Gridsum Holding Inc. provides data analysis software for multinational and domestic enterprises, and government agencies in China. Its proprietary distributed data architecture allows its customers to collect and analyze vast amounts of information; and Gridsum Big Data platform performs multi-dimensional correlation analysis and analyzes complex real-time events. The company offers Web Dissector to analyze customer Websites by monitoring and analyzing key performance indicators; Mobile Dissector to understand mobile app user activity; SEM Dissector for search engine marketing; SEO Dissector, a search engine optimization tool; Ad Dissector, an advertisement performance monitoring and optimization product; Contribution Dissector to evaluate the performance of advertising campaigns; Audience Dissector, an audience analysis product; Recommendation Engine, a data driven content recommendation solution. It also provides Government Web Dissector, a digital intelligence solution; Government Website Group Integrated Management Platform, an integrated management platform; Streaming Dissector, a real-time viewership analysis and operational efficiency monitor for digital online video; Video Dissector, an online video content analytics tool; TV Dissector, an analytics tool; Rating Plus, a television viewing data analytics tool; and Media Dissector, a mass, social, and user-generated content media monitoring and analytics tool. In addition, the company offers Law Dissector, a search and statistical analysis tool; Smart Push, a legal research tool; Information Dissector, an insightful analytical system; Social Listening, a could-based social listening solution; Gridsum Dashboard, a data visualization tool; and Gridsum Report Center, an automated report generation and distribution tool. Further, it develops new media analytics and information discovery solutions to address a range of customer needs. The company was founded in 2005 and is headquartered in Beijing, China.