LivePerson (NASDAQ:LPSN – Get Free Report) and InterDigital (NASDAQ:IDCC – Get Free Report) are both technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.
Insider and Institutional Ownership
79.8% of LivePerson shares are held by institutional investors. Comparatively, 99.8% of InterDigital shares are held by institutional investors. 2.0% of LivePerson shares are held by insiders. Comparatively, 3.5% of InterDigital shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current ratings and target prices for LivePerson and InterDigital, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| LivePerson | 1 | 0 | 0 | 0 | 1.00 |
| InterDigital | 0 | 0 | 3 | 1 | 3.25 |
Valuation & Earnings
This table compares LivePerson and InterDigital”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| LivePerson | $228.89 million | 0.17 | -$67.23 million | ($13.74) | -0.23 |
| InterDigital | $834.02 million | 10.54 | $406.64 million | $8.67 | 39.29 |
InterDigital has higher revenue and earnings than LivePerson. LivePerson is trading at a lower price-to-earnings ratio than InterDigital, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
LivePerson has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500. Comparatively, InterDigital has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500.
Profitability
This table compares LivePerson and InterDigital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| LivePerson | -51.89% | N/A | -8.39% |
| InterDigital | 38.32% | 28.17% | 15.00% |
Summary
InterDigital beats LivePerson on 14 of the 14 factors compared between the two stocks.
About LivePerson
LivePerson, Inc. engages in conversational artificial intelligence. It enables brands to leverage the Conversational Cloud's intelligence engine to connect with consumers through an integrated suite of mobile and online business messaging technologies. The company offers the Conversational Cloud, an enterprise-class digital customer conversation platform, which enables businesses and consumers to connect through conversational channels, such as voice, in-app, and mobile messaging. It also provides professional services; LivePerson's Conversational AI, including conversation builder, manager, and intelligence, and intent manager. In addition, it provides Voice AI, conversational intelligence and insights, and integration services. The company sells its products to Fortune 500 companies, Internet businesses, online merchants, automotive dealers, educational institution, public sector, and not-for-profit organizations. It operates in the United States, Canada, Latin America, South America, Europe, the Middle East, Africa, the United Kingdom, and the Asia-Pacific. LivePerson, Inc. was incorporated in 1995 and is headquartered in New York, New York.
About InterDigital
InterDigital, Inc. operates as a global research and development company with focus primarily on wireless, visual, artificial intelligence (AI), and related technologies. The company engages in the design and development of technologies that enable connected in a range of communications and entertainment products and services, which are licensed to companies providing such products and services, including makers of wireless communications, consumer electronics, IoT devices, and cars and other motor vehicles, as well as providers of cloud-based services, such as video streaming. It designs and develops a range of innovations for use in digital cellular and wireless products and networks, including 2G, 3G, 4G, 5G, and IEEE 802-related products and networks. The company also develops cellular technologies, such as technologies related to CDMA, TDMA, OFDM/OFDMA, and MIMO for use in 2G, 3G, 4G, and 5G wireless networks, as well as mobile terminal devices; and 3GPP technology portfolio in 5G, 5G, advanced and 6G, as well as technologies for automobiles, wearables, smart homes, drones, and other connected consumer electronic products. In addition, it provides video coding and transmission technologies; and engages in the research and development of artificial intelligence and machine learning solutions. Further, the company's patented technologies are used in various products that include smartphones, tablets, consumer electronics, and base stations; televisions, laptops, gaming consoles, set-top boxes, streaming devices, and connected automobiles. InterDigital, Inc. was incorporated in 1972 and is headquartered in Wilmington, Delaware.
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