Head-To-Head Analysis: Professional Diversity Network (IPDN) and Virtusa Corporation (VRTU)
Professional Diversity Network (NASDAQ: IPDN) and Virtusa Corporation (NASDAQ:VRTU) are both small-cap business services companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.
Volatility and Risk
Professional Diversity Network has a beta of 2.93, indicating that its stock price is 193% more volatile than the S&P 500. Comparatively, Virtusa Corporation has a beta of 1.67, indicating that its stock price is 67% more volatile than the S&P 500.
Valuation & Earnings
This table compares Professional Diversity Network and Virtusa Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Professional Diversity Network||$22.93 million||0.64||-$5.65 million||($4.61)||-0.81|
|Virtusa Corporation||$880.61 million||1.27||$53.27 million||$0.70||54.77|
Virtusa Corporation has higher revenue and earnings than Professional Diversity Network. Professional Diversity Network is trading at a lower price-to-earnings ratio than Virtusa Corporation, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and recommmendations for Professional Diversity Network and Virtusa Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Professional Diversity Network||0||0||0||0||N/A|
Virtusa Corporation has a consensus target price of $37.29, suggesting a potential downside of 2.75%. Given Virtusa Corporation’s higher possible upside, analysts clearly believe Virtusa Corporation is more favorable than Professional Diversity Network.
Insider and Institutional Ownership
4.9% of Professional Diversity Network shares are owned by institutional investors. Comparatively, 92.1% of Virtusa Corporation shares are owned by institutional investors. 19.0% of Professional Diversity Network shares are owned by company insiders. Comparatively, 6.0% of Virtusa Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This table compares Professional Diversity Network and Virtusa Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Professional Diversity Network||-74.31%||-30.67%||-19.63%|
Virtusa Corporation beats Professional Diversity Network on 10 of the 12 factors compared between the two stocks.
Professional Diversity Network Company Profile
Professional Diversity Network, Inc. is an operator of professional networks with a focus on diversity. The Company serves various communities, including Women, Hispanic-Americans, African-Americans, Asian-Americans, Disabled, Military Professionals, and Lesbian, Gay, Bisexual and Transgender (LGBT). The Company’s segments include Professional Diversity Network (PDN Network), which includes online professional networking communities with career resources for the needs of various diverse cultural groups; National Association of Professional Women (NAPW Network), a women-only professional networking organization, and Noble Voice operations (Noble Voice), a career consultation and lead generation service. The Noble Voice call centers qualify callers for real-time job placement. The PDN Network consists of various online professional networking communities dedicated to serving diverse professionals in the United States and employers seeking to hire diverse talent.
Virtusa Corporation Company Profile
Virtusa Corporation (Virtusa) is an information technology services company. The Company’s services include information technology (IT) and business consulting, digital enablement services, user experience (UX) design, development of IT applications, maintenance and support services, systems integration, infrastructure and managed services. Its services enable its clients to accelerate business outcomes by consolidating, rationalizing and modernizing the clients’ core customer-facing processes into one or more core systems. It delivers solutions through a global delivery model, applying advanced methods, such as Agile, a technique designed to accelerate application development. The Company uses its consulting methodology, Accelerated Solution Design (ASD). It supports the Chief Information Officers (CIOs) of its client organizations in solving their critical issues, including managing total cost of ownership, accelerating time-to-market and increasing productivity.
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