Financial Analysis: Lionbridge Technologies (LIOX) & ICF International (ICFI)

Lionbridge Technologies (NASDAQ: LIOX) and ICF International (NASDAQ:ICFI) are both industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.

Institutional and Insider Ownership

63.3% of Lionbridge Technologies shares are owned by institutional investors. Comparatively, 91.1% of ICF International shares are owned by institutional investors. 11.4% of Lionbridge Technologies shares are owned by company insiders. Comparatively, 5.5% of ICF International shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Lionbridge Technologies and ICF International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lionbridge Technologies 0 2 1 0 2.33
ICF International 0 3 3 0 2.50

Lionbridge Technologies presently has a consensus target price of $6.38, indicating a potential upside of 10.87%. ICF International has a consensus target price of $60.00, indicating a potential upside of 11.73%. Given ICF International’s stronger consensus rating and higher probable upside, analysts clearly believe ICF International is more favorable than Lionbridge Technologies.

Valuation and Earnings

This table compares Lionbridge Technologies and ICF International’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lionbridge Technologies N/A N/A N/A $0.16 35.94
ICF International $1.19 billion 0.84 $46.58 million $2.52 21.31

ICF International has higher revenue and earnings than Lionbridge Technologies. ICF International is trading at a lower price-to-earnings ratio than Lionbridge Technologies, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Lionbridge Technologies and ICF International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lionbridge Technologies 1.97% 12.05% 3.60%
ICF International 4.05% 10.14% 5.32%

Summary

ICF International beats Lionbridge Technologies on 8 of the 10 factors compared between the two stocks.

Lionbridge Technologies Company Profile

Lionbridge Technologies, Inc. is a United States-based company, which provides translation, online marketing, global content management and application testing solutions. The Company enables more than 800 brands to manage international market share and engage their customers in local markets across the world. It offers various solutions, such as Language Translation Services, Global Marketing Services, Website Translation and Localization, Engineering, Technical Publications and Training, Testing Services and Translation Technology. Its portfolio of language translation services includes Website Translation, Software Localization, Real-Time Translation for Chat and Forums, and Interpreter Services. Its Data Management Services allow companies to manage unprocessed data from multiple languages. Its Crowd translation of user-generated content (blogs, messages, surveys, reviews) allows clients to repurpose pieces of consumer advocacy for a new target language.

ICF International Company Profile

ICF International, Inc. provides professional services and technology-based solutions to government and commercial clients, including management, technology, and policy consulting and implementation services. The Company’s services address four markets: energy, environment and infrastructure; health, education and social programs; safety and security, and consumer and financial. Its services include research and analytic services, assessment and advisory services, design and management services, solution identification and implementation services, and engagement services. The Company researches policy, industry and stakeholder issues, trends and behavior. The Company collects and analyzes various data to understand issues and options for its clients. The Company measures and evaluates results and their impact and, based on those assessments, the Company provides advice to its clients on how to navigate societal, market, business, communication and technology challenges.

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