Tangoe (NASDAQ: TNGO) and Iron Mountain (NYSE:IRM) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitabiliy, analyst recommendations and dividends.

Profitability

This table compares Tangoe and Iron Mountain’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tangoe -7.96% -9.86% -7.97%
Iron Mountain 2.75% 12.74% 2.70%

Analyst Recommendations

This is a summary of current ratings and price targets for Tangoe and Iron Mountain, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tangoe 0 1 0 0 2.00
Iron Mountain 1 0 2 0 2.33

Tangoe presently has a consensus price target of $6.50, indicating a potential upside of 2.36%. Iron Mountain has a consensus price target of $39.33, indicating a potential upside of 13.19%. Given Iron Mountain’s stronger consensus rating and higher possible upside, analysts clearly believe Iron Mountain is more favorable than Tangoe.

Earnings and Valuation

This table compares Tangoe and Iron Mountain’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Tangoe $219.45 million 1.13 $9.64 million N/A N/A
Iron Mountain $3.70 billion 2.48 $1.16 billion $0.38 91.45

Iron Mountain has higher revenue and earnings than Tangoe.

Volatility and Risk

Tangoe has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500. Comparatively, Iron Mountain has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500.

Dividends

Iron Mountain pays an annual dividend of $2.20 per share and has a dividend yield of 6.3%. Tangoe does not pay a dividend. Iron Mountain pays out 579.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Iron Mountain has increased its dividend for 7 consecutive years.

Institutional & Insider Ownership

59.2% of Tangoe shares are held by institutional investors. Comparatively, 86.2% of Iron Mountain shares are held by institutional investors. 12.0% of Tangoe shares are held by insiders. Comparatively, 1.5% of Iron Mountain shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Iron Mountain beats Tangoe on 12 of the 15 factors compared between the two stocks.

About Tangoe

Tangoe, Inc. is a provider of information technology (IT) and Telecom Expense Management (TEM) software and related services. The Company offers its services to a range of global enterprises and service providers. Its products and solutions include mobility, telecom, cloud, IT expense, strategic consulting and mobility as a service (MaaS). Its mobility solution includes expense management; procurement, logistics and activation; usage management; enterprise mobility; mobile support, and financial management. Its IT expense solution includes expense management, inventory and asset management, usage management and financial management. Its enterprise mobility and IT consulting services include strategic sourcing; strategy assessment, planning, and policy development, and implementation and transition support. The Company offers contract sourcing, strategy and policy consulting, service maturity assessment, global services benchmarking and lifecycle advisory, among others.

About Iron Mountain

Iron Mountain Incorporated (Iron Mountain) is engaged in storing records, primarily paper documents and data backup media, and provide information management services. The Company offers records management services, data protection and recovery services and information destruction services. Its information management services are divided into three categories: records management services, data protection and recovery services, and information destruction services. The Company’s records management services include flexible retrieval access, retention management and records management program development and implementation based on practices to help customers comply with specific regulatory requirements and policy-based programs. It provides data protection and recovery services for both physical and electronic records. The Company’s information destruction services consist primarily of physical secure shredding operations.

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