Head-To-Head Review: Higher One (ONE) vs. Lionbridge Technologies (LIOX)

Higher One (NYSE: ONE) and Lionbridge Technologies (NASDAQ:LIOX) are both business support services – nec companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, valuation, risk, analyst recommendations and earnings.

Insider & Institutional Ownership

63.3% of Lionbridge Technologies shares are held by institutional investors. 11.4% of Lionbridge Technologies shares are held by 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.

Profitability

This table compares Higher One and Lionbridge Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Higher One -26.77% -16.36% -10.01%
Lionbridge Technologies 1.97% 12.05% 3.60%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Higher One and Lionbridge Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Higher One 0 0 0 0 N/A
Lionbridge Technologies 0 1 0 0 2.00

Lionbridge Technologies has a consensus target price of $5.75, indicating a potential upside of 0.00%. Given Lionbridge Technologies’ higher possible upside, analysts clearly believe Lionbridge Technologies is more favorable than Higher One.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Higher One N/A N/A N/A ($0.62) -8.31
Lionbridge Technologies N/A N/A N/A $0.16 35.94

Higher One is trading at a lower price-to-earnings ratio than Lionbridge Technologies, indicating that it is currently the more affordable of the two stocks.

Summary

Lionbridge Technologies beats Higher One on 8 of the 8 factors compared between the two stocks.

Higher One Company Profile

Higher One Holdings, Inc. is a provider of technology-based payment processing and refund disbursement services to higher education institutions and their students. The Company also provides campus communities with student-oriented banking services, which include user-friendly features, through its bank partners. The Company operates through two segments: Disbursements and Payments. The Disbursements segment includes its Refund Management disbursement service, which is offered to higher education institution clients, and the OneAccount, a Federal Deposit Insurance Corporation (FDIC)-insured online checking account that is offered to students, as well as faculty, staff and alumni. The Payments segment includes its CASHNet payment processing suite and its Campus Solutions suite, both of which enable higher education institutions to accept online payments, automate certain billing and processing functions, and offer tuition payment plans.

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.

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