diff --git a/lib/outdated.js b/lib/outdated.js
index 6e23ddd0118..80aef7971ae 100644
--- a/lib/outdated.js
+++ b/lib/outdated.js
@@ -26,6 +26,7 @@ var readInstalled = require("./utils/read-installed")
   , asyncMap = require("./utils/async-map")
   , npm = require("../npm")
   , log = require("./utils/log")
+  , semver = require("./utils/semver")
 
 // outdated(pref)
 // deps = pref/package.json dependencies, or {<pref/node_modules/*>:"*"}
@@ -118,7 +119,7 @@ function validateDep (prefix, args, dep, req, cb) {
     if (current === -1) return log("waiting for current")
     // now we know the current version (or false if it's not there)
     // and have the version that it ought to be.
-    var needsUpdate = canUpdate && current !== latest
+    var needsUpdate = canUpdate && semver.gt(latest, current)
     cb(null, current, needsUpdate)
   }
 }
diff --git a/package.json b/package.json
index c914b80fd89..443c12ccf0f 100644
--- a/package.json
+++ b/package.json
@@ -1,7 +1,7 @@
 { "name" : "npm"
 , "description" : "A package manager for node"
 , "keywords" : [ "package manager", "modules", "install", "package.json" ]
-, "version" : "1.0.0-0-rc"
+, "version" : "1.0.0-1-rc"
 , "tag" : "rc"
 , "homepage" : "http://npmjs.org/"
 , "author" : "Isaac Z. Schlueter <i@izs.me> (http://blog.izs.me)"