Intersections (NASDAQ: INTX) and Knoll (NYSE:KNL) are both small-cap business services companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, valuation, analyst recommendations, earnings, institutional ownership and profitabiliy.

Insider and Institutional Ownership

27.5% of Intersections shares are owned by institutional investors. Comparatively, 98.4% of Knoll shares are owned by institutional investors. 67.0% of Intersections shares are owned by company insiders. Comparatively, 1.9% of Knoll shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

Intersections has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500. Comparatively, Knoll has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500.

Dividends

Knoll pays an annual dividend of $0.60 per share and has a dividend yield of 3.1%. Intersections does not pay a dividend. Knoll pays out 36.8% of its earnings in the form of a dividend. Intersections has raised its dividend for 2 consecutive years.

Analyst Ratings

This is a summary of current ratings and recommmendations for Intersections and Knoll, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Intersections 0 0 0 0 N/A
Knoll 0 1 1 0 2.50

Knoll has a consensus price target of $27.00, suggesting a potential upside of 38.39%. Given Knoll’s higher possible upside, analysts plainly believe Knoll is more favorable than Intersections.

Profitability

This table compares Intersections and Knoll’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Intersections -18.19% -217.62% -50.50%
Knoll 7.02% 26.34% 9.35%

Earnings & Valuation

This table compares Intersections and Knoll’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Intersections $170.46 million 0.63 -$16.46 million ($1.32) -3.41
Knoll $1.14 billion 0.84 $150.35 million $1.63 11.97

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

Summary

Knoll beats Intersections on 12 of the 15 factors compared between the two stocks.

About Intersections

Intersections Inc. uses data to enable consumers reduce risk through subscription services. The Company’s operating segments include Personal Information Services, Insurance and Other Consumer Services, and Bail Bonds Industry Solutions. The Company’s Personal Information Services business segment focuses on helping consumers understand, monitor, manage and protect against the risks associated with third parties misusing their personal information and violating their privacy. The Company’s Insurance and Other Consumer Services business segment focuses on helping consumers use insurance and other services to manage various personal risks and achieve personal goals. The Company’s Bail Bonds Industry Solutions business segment focuses on automating the bail bonds industry. The Company offers IDENTITY GUARD portfolio of services. The Company’s insurance products are sold and administered pursuant to contracts with insurance companies.

About Knoll

Knoll, Inc. is a manufacturer of commercial and residential furniture, accessories and coverings. The Company operates through three segments: Office, Studio and Coverings. The Office segment includes a range of workplace products that address workplace planning paradigms. These products include systems furniture, seating, storage, tables, desks and KnollExtra accessories, as well as the international sales of its North American Office products. The Studio segment includes KnollStudio products, DatesWeiser, HOLLY HUNT and Knoll Europe. The Coverings segment includes KnollTextiles, Spinneybeck (including Filzfelt), and Edelman Leather. These businesses provide a range of customers with fabrics, felt, leather and related architectural products. KnollStudio products include iconic seating, lounge furniture, side, cafe and dining chairs, as well as conference, training, dining and occasional tables.

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