YuMe (NYSE: YUME) and Interactive Intelligence Group (NASDAQ:ININ) are both business services companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, analyst recommendations, profitability and earnings.

Valuation & Earnings

This table compares YuMe and Interactive Intelligence Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
YuMe $159.78 million 1.02 $10.08 million $0.10 47.30
Interactive Intelligence Group N/A N/A N/A ($1.47) -41.16

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

Profitability

This table compares YuMe and Interactive Intelligence Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
YuMe 2.46% 4.36% 2.88%
Interactive Intelligence Group -4.92% -12.52% -4.48%

Dividends

YuMe pays an annual dividend of $0.03 per share and has a dividend yield of 0.6%. Interactive Intelligence Group does not pay a dividend. YuMe pays out 30.0% of its earnings in the form of a dividend.

Insider & Institutional Ownership

38.3% of YuMe shares are owned by institutional investors. Comparatively, 83.2% of Interactive Intelligence Group shares are owned by institutional investors. 29.3% of YuMe shares are owned by company insiders. Comparatively, 21.4% of Interactive Intelligence Group shares are owned by company 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.

Analyst Ratings

This is a summary of current recommendations for YuMe and Interactive Intelligence Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
YuMe 1 1 0 0 1.50
Interactive Intelligence Group 0 1 0 0 2.00

YuMe presently has a consensus target price of $3.00, suggesting a potential downside of 36.58%. Given YuMe’s higher probable upside, equities research analysts clearly believe YuMe is more favorable than Interactive Intelligence Group.

Volatility & Risk

YuMe has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500. Comparatively, Interactive Intelligence Group has a beta of 1.89, meaning that its share price is 89% more volatile than the S&P 500.

Summary

YuMe beats Interactive Intelligence Group on 8 of the 12 factors compared between the two stocks.

YuMe Company Profile

YuMe, Inc. (YuMe) is an independent provider of multi-screen video advertising technology, connecting brand advertisers, digital media property owners and consumers of video content across a range of Internet-connected devices. The Company operating segments include Domestic and International. The Company offers advertising customers end-to-end marketing solutions by combining data-driven technologies with deep insight into audience behavior. The Company also offers demand-side platform (DSP), called YuMe for Advertisers, to find relevant audiences and deliver targeted advertising, and a supply-side platform (SSP), called YuMe for Publishers (YFP 5.0), which helps aggregate audiences, define audience characteristics and offer monetization opportunities for digital media property owners. Its technologies serve the specific needs of brand advertisers and enable them to find and target brand-receptive audiences across a range of Internet connected devices and digital media properties.

Interactive Intelligence Group Company Profile

Interactive Intelligence Group, Inc. is a provider of software and cloud services for customer engagement, communications and collaboration. The Company operates in the segment of interaction management software solutions licensing and associated services. It offers approximately three types of products, including on-premises software; a single-tenant cloud service, and a multi-tenant cloud service. The Company’s offerings are used across a range of vertical industries, including accounts receivable management, banking, government, healthcare, insurance, manufacturing, utilities and retail. Its PureCloud Engage is an omnichannel customer engagement cloud service designed for contact centers of all sizes. Its PureCloud Communicate is a communications and collaboration cloud service for enterprises of all sizes designed to support connected workforce. Its on-premises and single-tenant cloud products are available in approximately 24 languages and deployed in over 125 countries.

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