Who is the real growth company in this sector?

This morning  Quindell Portfolio (LON:QPP) announced another contract win with Honda, Quindell will deliver a range of accident management services to Honda customers. The contract was was awarded after a trial period which commenced in January 2013 and will run for a minimum of three years, some important factors that I read into the latest RNS.

Firstly and in my opinion most important, the RNS  was presented by the Simon Pook, Chief Operating Officer Quindell Business Process Services  at a divisional level and at Group level David Sandhu, Group Chief Operating Officer, to me this is the company demonstrating they are more than a one man team.

Whilst we have no visibility of revenue or profitability in the RNS, I for one am pleased, there is already enough hype and positivity on the bulletin boards and this does not need fueling. Honda is a great brand and will be useful marketing tool for the company, its also organic growth.

Looking forward at the three main competitors in this marketplace you can see from the table below, Quindell are in another league when directly compared to Guidewire and Innovation (LON:TIG). Quindell are on track for revenue growth of approximately 222%,  so who is the real growth company in this sector?

 

Guidewire filed 3rd quarter results yesterday whilst we're ahead in revenue terms resulted in a loss of $2.7 million or $0.05 per share,  they have been rewarded by the investing public and institutions in the States with a 9% rise in share price overnight.  I am happy to see success for Guidewire its a benchmark that I hope to see Quindell Portfolio (LON:QPP) achieve in terms of valuation.

Rob Terry recently tweeted that they were looking at a listing in the USA, and its inevitable that US analysts and private investors will make comparisons of Quindell  against Guidewire, and I expect any US listing to be a game changer in terms of valuation.

I am holding onto my holding in Quindell, there does remain some questions to be answered in greater detail as pointed out by Paul Scott on his daily Small cap report, given the growth of Quindell, it appears they will win the race to issue dividends and also given the significant difference in forecast profits will be able to grow and develop systems quicker than their competitors as the cash rolls in.

Steamy

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser. Read all you can and take in all sides of the discussion.