Analyzing ZIX (ZIXI) & Intralinks (IL)

ZIX (NASDAQ: ZIXI) and Intralinks (NYSE:IL) are both technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.

Analyst Ratings

This is a summary of recent ratings and price targets for ZIX and Intralinks, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ZIX 0 1 1 0 2.50
Intralinks 0 0 0 0 N/A

ZIX presently has a consensus target price of $6.13, suggesting a potential upside of 31.72%. Given ZIX’s higher possible upside, equities analysts clearly believe ZIX is more favorable than Intralinks.

Profitability

This table compares ZIX and Intralinks’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ZIX 10.49% 15.64% 9.49%
Intralinks -1.63% -1.87% -1.13%

Insider and Institutional Ownership

65.9% of ZIX shares are held by institutional investors. Comparatively, 91.2% of Intralinks shares are held by institutional investors. 4.5% of ZIX shares are held by company insiders. Comparatively, 32.3% of Intralinks shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares ZIX and Intralinks’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ZIX $60.14 million 4.31 $5.83 million $0.13 35.77
Intralinks N/A N/A N/A ($0.35) -37.17

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

Summary

ZIX beats Intralinks on 8 of the 10 factors compared between the two stocks.

About ZIX

Zix Corporation offers e-mail encryption, data loss prevention and bring-your-own-device (BYOD) security to meet business data protection and compliance needs. The Company operates through e-mail encryption and security solutions. Its Zix Email Encryption enables the secure exchange of e-mails that include sensitive information through a secure messaging service. It offers ZixDirectory, an e-mail encryption community that is designed to share identities of its members; Best Method of Delivery, which is designed to deliver e-mail, and ZixGateway, which automatically encrypts and decrypts messages with sensitive content. ZixCorp delivers over 1.5 million encrypted messages on a typical business day. On an average, 70% of those encrypted messages are exchanged between senders and recipients. It also offers ZixQuarantine, an e-mail-specific solution. Its ZixOne is a mobile e-mail application that solves the information technology (IT) challenge created by the BYOD trend in the workplace.

About Intralinks

Intralinks Holdings, Inc. is a technology provider of software-as-a-service (SaaS) solutions for secure enterprise content collaboration within and among organizations. The Company’s cloud-based solutions enable organizations to manage, control, track, search, exchange and collaborate on sensitive information inside and outside the firewall. Its solutions enables its customers to manage electronic information, accelerate information-intensive business processes, optimize critical information workflows, meet regulatory and risk management requirements, and collaborate with business counterparties. The Company delivers its solutions through a cloud-based model, making them available on-demand over the Internet using a multi-tenant SaaS architecture. The Company serves enterprises and governmental agencies across a range of industries, including financial services, pharmaceutical, manufacturing, biotechnology, consumer, energy, legal, professional services, insurance and technology.

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