Head-To-Head Contrast: Ideanomics (NASDAQ:IDEX) & Liquidity Services (NASDAQ:LQDT)

Liquidity Services (NASDAQ:LQDT) and Ideanomics (NASDAQ:IDEX) are both small-cap business services companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, dividends, valuation, analyst recommendations, institutional ownership, risk and profitability.

Analyst Recommendations

This is a breakdown of current recommendations for Liquidity Services and Ideanomics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Liquidity Services 0 0 1 0 3.00
Ideanomics 0 0 1 0 3.00

Liquidity Services currently has a consensus price target of $16.50, suggesting a potential downside of 19.86%. Ideanomics has a consensus price target of $7.00, suggesting a potential upside of 183.40%. Given Ideanomics’ higher possible upside, analysts clearly believe Ideanomics is more favorable than Liquidity Services.

Earnings and Valuation

This table compares Liquidity Services and Ideanomics’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Liquidity Services $205.94 million 3.51 -$3.77 million $0.12 171.58
Ideanomics $26.76 million 39.31 -$98.22 million ($0.43) -5.74

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

Insider and Institutional Ownership

65.7% of Liquidity Services shares are held by institutional investors. Comparatively, 4.8% of Ideanomics shares are held by institutional investors. 29.9% of Liquidity Services shares are held by insiders. Comparatively, 21.5% of Ideanomics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Liquidity Services and Ideanomics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Liquidity Services 6.98% 20.28% 11.01%
Ideanomics -146.60% -39.06% -28.90%

Risk and Volatility

Liquidity Services has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500. Comparatively, Ideanomics has a beta of -0.46, indicating that its share price is 146% less volatile than the S&P 500.

Summary

Liquidity Services beats Ideanomics on 9 of the 11 factors compared between the two stocks.

About Liquidity Services

Liquidity Services, Inc. provides e-commerce marketplace that enable buyers and sellers to transact in an automated environment. The company's marketplaces include liquidation.com that enable corporations to sell surplus and salvage consumer goods and retail capital assets; govdeals.com provides self-directed service solutions in which sellers list their own assets that enables local and state government entities, and commercial businesses located in the United States and Canada to sell surplus and salvage assets, as well as offers asset sales and marketing services; and AllSurplus.com, a centralized marketplace that connects global buyer base with assets from across the network of legacy marketplaces in a single destination, as well as also serves as heavy equipment vertical. It also operates networkintl.com, which enables corporations to sell idle, surplus, and scrap equipment in the oil and gas, petrochemical, and power generation industries; go-dove.com marketplace for corporations located in the United States, Europe, and Asia to sell manufacturing surplus, salvage capital assets, and scrap material; secondipity.com that provides consumers a source of products through donating a portion of the proceeds of sale to charity; and machinio.com, a search engine for used machinery and equipment. The company's marketplaces provide professional buyers access to supply of new, surplus, and scrap assets presented with digital images and other product information; and enables corporate and government sellers to enhance their financial return on assets by providing a liquid marketplace and value-added services. It offers products from industry verticals, such as consumer electronics, general merchandise, apparel, scientific equipment, aerospace parts and equipment, technology hardware, energy equipment, industrial capital assets, fleet and transportation equipment, and heavy and specialty equipment. The company was founded in 1999 and is headquartered in Bethesda, Maryland.

About Ideanomics

Ideanomics, Inc. focuses on driving the adoption of commercial electric vehicles, associated energy consumption, and developing financial services and fintech products. Its Ideanomics Mobility division facilitates the adoption of electric vehicles by commercial fleet operators. This division also offers solutions for the procurement, financing, charging, and energy management needs for fleet operators of commercial electric vehicles. The company's Ideanomics Capital division provides fintech services, which focuses on the enhancement of efficiency, transparency, and profitability for the financial services industry. Ideanomics, Inc. was incorporated in 2004 and is headquartered in New York, New York.

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