Innodata (NASDAQ:INOD) and Cars.com (NYSE:CARS) are both small-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, risk, institutional ownership, dividends and valuation.
Risk and Volatility
Innodata has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500. Comparatively, Cars.com has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500.
This is a summary of current ratings for Innodata and Cars.com, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cars.com has a consensus price target of $24.36, indicating a potential upside of 127.85%. Given Cars.com’s higher possible upside, analysts clearly believe Cars.com is more favorable than Innodata.
Insider & Institutional Ownership
13.8% of Innodata shares are owned by institutional investors. 11.4% of Innodata shares are owned by company insiders. Comparatively, 0.4% of Cars.com shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Innodata and Cars.com’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cars.com||$662.13 million||1.08||$38.81 million||$1.82||5.87|
Cars.com has higher revenue and earnings than Innodata.
This table compares Innodata and Cars.com’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Cars.com beats Innodata on 8 of the 10 factors compared between the two stocks.
Innodata Inc. operates as a digital services and solution company worldwide. The company operates through three segments: Digital Data Solutions (DDS), Synodex, and Agility PR Solutions (Agility). The DDS segment combines deep neural networks and human expertise to make unstructured information useable for various domains, including health, science, and law. The Synodex segment transforms medical records into useable digital data and applies technologies to the digital data to augment decision support. The Agility segment offers various tools and related professional services, such as content amplification solution, integrated newswire services, an influencer targeting solution to help PR professionals identify influencers, and media monitoring and analysis solution. This segment also provides media monitoring and PR measurement; and PR reporting and measurement services, including custom reports and PR measurement and social media/influencer analysis, as well as Bulldog Reporter, a publisher of PR-related news and a popular e-newsletter, and Bulldog Awards, a PR awards program that recognizes outstanding performance among PR and communications professionals and agencies. In addition, it provides various services, including acquisition, transformation, and digital data enrichment. In addition, the company offers digital operations management and analytics, such as IP rights, contract, publishing workflow, publisher relationship, and transaction management, as well as provides customer relations, data processing, and regulatory reporting services. Further, it develops and maintains content applications. The company serves banking and financial services, technology, digital retailing, healthcare, science, and insurance sector through its professional staff, senior management, and direct sales personnel. Innodata Inc. was founded in 1988 and is headquartered in Ridgefield Park, New Jersey.
Cars.com Inc., through its subsidiaries, operates as a digital automotive marketplace that connects local car dealers to consumers in the United States. The company offers a suite of digital solutions that creates connections between individuals researching cars or looking to purchase a car with car dealerships and automotive original equipment manufacturers. It also sells online subscription advertising products to car dealerships by its direct sales force, as well as through its affiliate sales channel. In addition, the company sells display advertising to national advertisers. Further, it offers online automotive marketplace service that connects buyers and sellers through Cars.com, Auto.com, DealerRater.com, NewCars.com, PickupTrucks.com, DealerInspire.com, and LaunchDigitalMarketing.com Websites. Its platform hosts approximately 4.9 million new and used vehicle listings and serves approximately 20,000 franchise and independent car dealers. Cars.com Inc. was founded in 1998 and is headquartered in Chicago, Illinois.
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