Head-To-Head Analysis: Innodata (INOD) vs. Its Competitors

Innodata (NASDAQ:INOD) is one of 203 public companies in the “Professional Services” industry, but how does it compare to its competitors? We will compare Innodata to related companies based on the strength of its risk, dividends, valuation, analyst recommendations, institutional ownership, profitability and earnings.

Risk & Volatility

Innodata has a beta of 3.11, suggesting that its share price is 211% more volatile than the S&P 500. Comparatively, Innodata’s competitors have a beta of 0.96, suggesting that their average share price is 4% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Innodata and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innodata	0	2	2	1	2.80
Innodata Competitors	1587	6458	9172	431	2.48

Innodata currently has a consensus target price of $116.67, suggesting a potential upside of 209.53%. As a group, “Professional Services” companies have a potential upside of 24.54%. Given Innodata’s stronger consensus rating and higher probable upside, equities analysts clearly believe Innodata is more favorable than its competitors.

Valuation & Earnings

This table compares Innodata and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Innodata	$251.66 million	$32.18 million	28.55
Innodata Competitors	$3.28 billion	$228.38 million	35.34

Innodata’s competitors have higher revenue and earnings than Innodata. Innodata is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Innodata and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Innodata	14.66%	37.79%	20.92%
Innodata Competitors	-0.24%	28.23%	4.31%

Insider and Institutional Ownership

30.7% of Innodata shares are owned by institutional investors. Comparatively, 57.4% of shares of all “Professional Services” companies are owned by institutional investors. 11.8% of Innodata shares are owned by company insiders. Comparatively, 17.1% of shares of all “Professional Services” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Innodata beats its competitors on 7 of the 13 factors compared.

Innodata Company Profile

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.