Innodata (NASDAQ:INOD – Get Free Report) and E2open Parent (NYSE:ETWO – Get Free Report) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, earnings, institutional ownership, valuation and risk.
Volatility and Risk
Innodata has a beta of 2.02, indicating that its share price is 102% more volatile than the S&P 500. Comparatively, E2open Parent has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and price targets for Innodata and E2open Parent, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Innodata | 0 | 0 | 0 | 0 | N/A |
E2open Parent | 0 | 5 | 0 | 0 | 2.00 |
Earnings & Valuation
This table compares Innodata and E2open Parent’s top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Innodata | $86.78 million | 3.81 | -$910,000.00 | ($0.05) | -230.00 |
E2open Parent | $634.55 million | 2.64 | -$1.07 billion | ($3.54) | -1.39 |
Innodata has higher earnings, but lower revenue than E2open Parent. Innodata is trading at a lower price-to-earnings ratio than E2open Parent, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
30.8% of Innodata shares are owned by institutional investors. 18.2% of Innodata shares are owned by insiders. Comparatively, 5.8% of E2open Parent shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Innodata and E2open Parent’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Innodata | -1.05% | -4.14% | -1.68% |
E2open Parent | -168.63% | 3.29% | 1.85% |
Summary
Innodata beats E2open Parent on 7 of the 12 factors compared between the two stocks.
About Innodata
Innodata Inc. operates as a global data engineering company in the United States, the United Kingdom, the Netherlands, Canada, and internationally. The company operates through three segments: Digital Data Solutions (DDS), Synodex, and Agility. The DDS segment engages in the provision of artificial intelligence (AI) data preparation services; collecting or creating training data; annotating training data; and training AI algorithms for its customers, as well as AI model deployment and integration services. This segment also provides a range of data engineering support services, including data transformation, data curation, data hygiene, data consolidation, data extraction, data compliance, and master data management. The Synodex segment offers an industry platform that transforms medical records into useable digital data with its proprietary data models or client data models. The Agility segment provides an industry platform that offers marketing communications and public relations professionals to target and distribute content to journalists and social media influencers; and to monitor and analyze global news channels, such as print, web, radio, and TV, as well as social media channels. It serves banking, insurance, financial services, technology, digital retailing, and information/media sectors through its professional staff, senior management, and direct sales personnel. The company was formerly known as Innodata Isogen, Inc. and changed its name to Innodata Inc. in June 2012. Innodata Inc. was incorporated in 1988 and is headquartered in Ridgefield Park, New Jersey.
About E2open Parent
E2open Parent Holdings, Inc. provides cloud-based and end-to-end supply chain management and orchestration SaaS platform in the Americas, Europe, and the Asia Pacific. Its software solutions orchestrate supply chains and realize value and return on investment for its blue-chip customers. The company's software combines networks, data, and applications to provide a platform that allows customers to optimize their channel and supply chain across channel shaping, demand sensing, business planning, global trade management, transportation and logistics, collaborative manufacturing, and supply management. It serves technology, consumer, industrial, transportation, and other industries. The company was incorporated in 2020 and is headquartered in Austin, Texas.
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