Insight Enterprises (NASDAQ: NSIT) and Medidata Solutions (NASDAQ:MDSO) are both retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, institutional ownership, risk, dividends, earnings and profitability.

Valuation & Earnings

This table compares Insight Enterprises and Medidata Solutions’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Insight Enterprises $6.02 billion 0.27 $223.55 million $2.68 16.81
Medidata Solutions $508.77 million 9.32 $76.83 million $0.62 130.77

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

Volatility & Risk

Insight Enterprises has a beta of 1.67, indicating that its stock price is 67% more volatile than the S&P 500. Comparatively, Medidata Solutions has a beta of 1.77, indicating that its stock price is 77% more volatile than the S&P 500.

Profitability

This table compares Insight Enterprises and Medidata Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Insight Enterprises 1.61% 14.93% 4.64%
Medidata Solutions 7.07% 11.14% 5.49%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Insight Enterprises and Medidata Solutions, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Insight Enterprises 1 1 1 0 2.00
Medidata Solutions 0 2 9 0 2.82

Insight Enterprises presently has a consensus target price of $49.75, indicating a potential upside of 10.41%. Medidata Solutions has a consensus target price of $84.64, indicating a potential upside of 4.39%. Given Insight Enterprises’ higher probable upside, analysts plainly believe Insight Enterprises is more favorable than Medidata Solutions.

Insider and Institutional Ownership

97.0% of Insight Enterprises shares are owned by institutional investors. Comparatively, 97.5% of Medidata Solutions shares are owned by institutional investors. 1.4% of Insight Enterprises shares are owned by insiders. Comparatively, 5.8% of Medidata Solutions shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Medidata Solutions beats Insight Enterprises on 9 of the 14 factors compared between the two stocks.

Insight Enterprises Company Profile

Insight Enterprises, Inc. is engaged in providing information technology (IT) hardware, software, and cloud and service solutions to business, government, healthcare and educational clients. The Company operates through three segments: North America, EMEA and APAC. North America comprises the United States and Canada; EMEA comprises Europe, the Middle East and Africa, and APAC comprises Asia Pacific. The Company consults, designs, implements and manages integrated IT solutions for its customers. Its offerings in North America and select countries in Europe, the Middle East and Africa include a suite of IT hardware, software and services solutions. Its offerings in the remainder of EMEA and APAC segments are software and select software-related services. Its cloud management platform serves as a marketplace for its clients to buy and manage their cloud subscriptions with options that manage their software-as-a-service and infrastructure-as-a-service management capabilities.

Medidata Solutions Company Profile

Medidata Solutions Inc. (Medidata) is a provider of cloud-based solutions for life sciences. The Company provides cloud-based solutions for clinical research in life sciences, offering platform technology that focuses on the clinical development. The Company’s plan study addresses three areas to ensure optimal study design, grant development and negotiation, and investigator payments. Study Design Optimization enables customers to gain visibility into the impact of protocol elements on resource and trial endpoints. Grants Manager compares specific industry benchmarks and analytics, using industry’s database of negotiated procedure costs, to support appropriate grants to investigator sites and automated negotiations with multiple investigator sites. Payments enables customers to establish a global investigator payment strategy and process to automate payment calculation, distribution and reporting, including tax and currency exchange calculations.

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