Financial Comparison: Exponent (EXPO) and Lionbridge Technologies (LIOX)

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

Dividends

Exponent pays an annual dividend of $0.84 per share and has a dividend yield of 1.2%. Lionbridge Technologies does not pay a dividend. Exponent pays out 41.0% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Exponent 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
Exponent $315.08 million 5.90 $47.48 million $2.05 35.12
Lionbridge Technologies N/A N/A N/A $0.16 35.94

Exponent has higher revenue and earnings than Lionbridge Technologies. Exponent 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 Exponent and Lionbridge Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Exponent 16.46% 17.21% 11.99%
Lionbridge Technologies 1.97% 12.05% 3.60%

Institutional & Insider Ownership

88.6% of Exponent shares are held by institutional investors. Comparatively, 63.3% of Lionbridge Technologies shares are held by institutional investors. 2.8% of Exponent shares are held by company insiders. Comparatively, 11.4% of Lionbridge Technologies shares are held by company 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.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Exponent and Lionbridge Technologies, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Exponent 0 1 1 0 2.50
Lionbridge Technologies 0 1 0 0 2.00

Exponent presently has a consensus price target of $79.50, indicating a potential upside of 10.42%. Lionbridge Technologies has a consensus price target of $5.75, indicating a potential upside of 0.00%. Given Exponent’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Exponent is more favorable than Lionbridge Technologies.

Summary

Exponent beats Lionbridge Technologies on 10 of the 13 factors compared between the two stocks.

Exponent Company Profile

Exponent, Inc. (Exponent), along with its subsidiaries, is a science and engineering consulting company. Exponent provides engineering and scientific consulting services to clients around the world. Its service offerings are provided on a project-by-project basis. It operates in two segments: Engineering and Other Scientific, and Environmental and Health. Its Engineering and Other Scientific segment includes biomechanics, biomedical engineering, buildings and structures, civil engineering, construction consulting, materials and corrosion engineering, mechanical engineering, polymer science and materials chemistry, statistical and data sciences, thermal sciences and vehicle analysis services. Its Environmental and Health segment includes chemical regulation and food safety; ecological and biological sciences; environmental and earth sciences, and health sciences. Exponent serves clients in automotive, government, health, insurance, manufacturing and technology, among others.

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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