Contrasting Anterix (NASDAQ:ATEX) and IHS (NYSE:IHS)

IHS (NYSE:IHS) and Anterix (NASDAQ:ATEX) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, dividends, valuation, earnings and profitability.

Institutional & Insider Ownership

17.5% of IHS shares are held by institutional investors. Comparatively, 87.7% of Anterix shares are held by institutional investors. 45.6% of Anterix shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares IHS and Anterix”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IHS	$1.58 billion	1.75	$143.60 million	$0.41	20.13
Anterix	$6.03 million	132.32	-$11.37 million	$4.35	9.79

IHS has higher revenue and earnings than Anterix. Anterix is trading at a lower price-to-earnings ratio than IHS, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares IHS and Anterix’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
IHS	8.12%	-661.41%	12.24%
Anterix	1,370.92%	-12.26%	-6.55%

Risk & Volatility

IHS has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500. Comparatively, Anterix has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for IHS and Anterix, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IHS	2	4	3	0	2.11
Anterix	0	2	1	0	2.33

IHS currently has a consensus price target of $9.61, indicating a potential upside of 16.38%. Anterix has a consensus price target of $50.00, indicating a potential upside of 17.37%. Given Anterix’s stronger consensus rating and higher probable upside, analysts clearly believe Anterix is more favorable than IHS.

Summary

Anterix beats IHS on 8 of the 14 factors compared between the two stocks.

About IHS

IHS Inc. develops source of information, insight and analytics in different areas of business. The Company’s segments include Resources, Transportation and Consolidated Markets & Solutions. The Company’s Resources segment includes its Energy and Chemicals product offerings. Its Transportation segment includes its Automotive; Maritime & Trade, and Aerospace, Defense & Security product offerings. Its Consolidated Markets & Solutions segment includes its Product Design; Technology, Media & Telecom, and Economics & Country Risk product offerings. It provides authoritative analysis and forecasts of sales and production for light vehicles, medium and heavy commercial vehicles, powertrain, components and technology systems across various markets. Its product design offerings include content and analysis on various engineering and technical standards, codes, reference books, journals, and other scientific and technical documents, as well as software-based engineering decision engines.

About Anterix

Anterix Inc. operates as a wireless communications company. The company focuses on commercializing its spectrum assets to enable the targeted utility and critical infrastructure customers to deploy private broadband networks and innovative broadband solutions. It holds licensed spectrum in the 900 MHz band with coverage throughout the United States, Alaska, Hawaii, and Puerto Rico. The company was formerly known as pdvWireless, Inc. and changed its name to Anterix Inc. in August 2019. Anterix Inc. was incorporated in 1997 and is headquartered in Woodland Park, New Jersey.