Internap Corporation (NASDAQ: INAP) and Xura (NASDAQ:MESG) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, analyst recommendations, profitability, institutional ownership and earnings.

Institutional & Insider Ownership

77.3% of Internap Corporation shares are held by institutional investors. 5.8% of Internap Corporation shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Internap Corporation and Xura’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Internap Corporation -45.52% -234.35% -5.73%
Xura -37.80% -54.10% -12.53%

Volatility and Risk

Internap Corporation has a beta of 1.99, suggesting that its share price is 99% more volatile than the S&P 500. Comparatively, Xura has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Internap Corporation and Xura, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Internap Corporation 0 1 2 1 3.00
Xura 0 1 0 0 2.00

Internap Corporation presently has a consensus target price of $5.83, indicating a potential upside of 26.81%. Xura has a consensus target price of $25.00, indicating a potential upside of 0.20%. Given Internap Corporation’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Internap Corporation is more favorable than Xura.

Earnings and Valuation

This table compares Internap Corporation and Xura’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Internap Corporation $289.83 million 1.26 $71.04 million ($2.37) -1.94
Xura N/A N/A N/A $6.67 3.74

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

Summary

Internap Corporation beats Xura on 9 of the 12 factors compared between the two stocks.

About Internap Corporation

Internap Corporation is a technology provider of Internet infrastructure. The Company provides Internet infrastructure through both Colocation Business and Enterprise Services and Cloud Services. The Company operates through two segments: Data Center and Network Services, and Cloud and Hosting Services. Its Data Center and Network Services segment consists of colocation and Internet Protocol (IP) connectivity services. Colocation involves providing physical space within data centers and associated services, such as power, interconnection, environmental controls, monitoring and security while allowing its customers to deploy and manage their servers, storage and other equipment in its secure data centers. Its cloud and hosting services segment consists of hosted Infrastructure-as-a-Service as a cloud platform or through managed hosting. For both Infrastructure-as-a-Service options, the Company provides and maintains the hardware, data center infrastructure and interconnection.

About Xura

Xura, Inc. (Xura) is a United States-based provider of digital communications services. The Company offers a portfolio of digital services solutions that enable global communications across a range of mobile devices and platforms. Its digital communications services include Xura Network Function Virtualization (NFV), Xura Rich Communications Suite (RCS), Xura Signaling Fraud Management, Xura Telco-Web Gateways, Xura Communications Suite and Xura Message Controller. Its monetization services include low credit services and value added services. The Company helps communication service providers (CSPs) and enterprises to navigate and monetize the digital ecosystem through its cloud-based offerings. It also offers Rich Web and Mobile Application Development Framework. The Company helps operators around the world to secure their networks and protect their customers. The Company offers its solutions to people through service providers and enterprises in approximately 140 countries.

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