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

Analyst Ratings

This is a summary of recent recommendations for Internap Corporation and TeleCommunication Systems, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Internap Corporation 0 1 2 1 3.00
TeleCommunication Systems 0 0 0 0 N/A

Internap Corporation presently has a consensus target price of $6.17, suggesting a potential upside of 22.35%. Given Internap Corporation’s higher possible upside, equities analysts clearly believe Internap Corporation is more favorable than TeleCommunication Systems.

Insider and Institutional Ownership

83.5% of Internap Corporation shares are held by institutional investors. 3.7% of Internap Corporation 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.

Profitability

This table compares Internap Corporation and TeleCommunication Systems’ 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%
TeleCommunication Systems 2.99% 10.24% 3.52%

Valuation & Earnings

This table compares Internap Corporation and TeleCommunication Systems’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Internap Corporation $289.83 million 1.38 $71.04 million ($2.37) -2.13
TeleCommunication Systems N/A N/A N/A N/A N/A

Internap Corporation has higher revenue and earnings than TeleCommunication Systems.

Summary

Internap Corporation beats TeleCommunication Systems on 6 of the 9 factors compared between the two stocks.

Internap Corporation Company Profile

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.

TeleCommunication Systems Company Profile

TeleCommunication Systems, Inc. develops and delivers wireless communication technology. The Company delivers cellular network computing services that include public safety solutions for 9-1-1 call delivery, precision location platforms, and applications that include navigation, locator applications and text messaging, as well as secure wireless communications systems and professional services. The Company has two operating segments: Commercial segment, which engineers and develops software for cellular carrier and enterprise networks that is engaged in the delivery of secure and personalized content, services, and transactions to and from wireless devices, and Government segment, which engineers and provides wireless communication solutions, including deployable communication systems and related support services to agencies of the United States Departments of Defense, Homeland Security, State, Justice and other state and local Government customers.

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