Charles River Associates (NASDAQ:CRAI – Get Free Report) and Innodata (NASDAQ:INOD – Get Free Report) are both small-cap industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, analyst recommendations, dividends, earnings and risk.
Risk and Volatility
Charles River Associates has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500. Comparatively, Innodata has a beta of 2.88, suggesting that its stock price is 188% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Charles River Associates and Innodata, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Charles River Associates | 0 | 1 | 1 | 0 | 2.50 |
| Innodata | 0 | 2 | 1 | 1 | 2.75 |
Institutional & Insider Ownership
84.1% of Charles River Associates shares are held by institutional investors. Comparatively, 30.7% of Innodata shares are held by institutional investors. 4.5% of Charles River Associates shares are held by insiders. Comparatively, 11.8% of Innodata shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Charles River Associates and Innodata’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Charles River Associates | 6.20% | 27.31% | 8.36% |
| Innodata | 14.66% | 37.79% | 20.92% |
Valuation & Earnings
This table compares Charles River Associates and Innodata”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Charles River Associates | $751.58 million | 1.39 | $54.78 million | $7.51 | 22.15 |
| Innodata | $251.66 million | 7.78 | $32.18 million | $1.32 | 43.17 |
Charles River Associates has higher revenue and earnings than Innodata. Charles River Associates is trading at a lower price-to-earnings ratio than Innodata, indicating that it is currently the more affordable of the two stocks.
Summary
Innodata beats Charles River Associates on 10 of the 14 factors compared between the two stocks.
About Charles River Associates
CRA International, Inc., together with its subsidiaries, provides economic, financial, and management consulting services worldwide. It advises clients on economic and financial matters pertaining to litigation and regulatory proceedings; and guides corporations through business strategy and performance-related issues. The company also offers consulting services, including research and analysis, expert testimony, and support in litigation and regulatory proceedings in the areas of finance, accounting, economics, insurance, and forensic accounting and investigations to corporate clients and attorneys. In addition, it offers management consulting services comprising strategy development, performance improvement, corporate strategy and portfolio analysis, estimation of market demand, environmental, social and corporate governance and sustainability strategy and analysis, design and implementation of auction and bidding, new product pricing strategies, survey and market research, valuation of intellectual property and other assets, assessment of competitors’ actions, and analysis of new sources of supply. The company serves various industries, including communications and media; consumer, health, and wellness products; energy; entertainment and leisure; financial services; healthcare; life sciences; manufacturing and industries; natural resources; retail and distribution; technology; and transportation. CRA International, Inc. was incorporated in 1965 and is headquartered in Boston, Massachusetts.
About Innodata
Innodata Inc. operates as a global data engineering company in the United States, the United Kingdom, the Netherlands, Canada, and internationally. The company operates through three segments: Digital Data Solutions (DDS), Synodex, and Agility. The DDS segment engages in the provision of artificial intelligence (AI) data preparation services; collecting or creating training data; annotating training data; and training AI algorithms for its customers, as well as AI model deployment and integration services. This segment also provides a range of data engineering support services, including data transformation, data curation, data hygiene, data consolidation, data extraction, data compliance, and master data management. The Synodex segment offers an industry platform that transforms medical records into useable digital data with its proprietary data models or client data models. The Agility segment provides an industry platform that offers marketing communications and public relations professionals to target and distribute content to journalists and social media influencers; and to monitor and analyze global news channels, such as print, web, radio, and TV, as well as social media channels. It serves banking, insurance, financial services, technology, digital retailing, and information/media sectors through its professional staff, senior management, and direct sales personnel. The company was formerly known as Innodata Isogen, Inc. and changed its name to Innodata Inc. in June 2012. Innodata Inc. was incorporated in 1988 and is headquartered in Ridgefield Park, New Jersey.
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