Analyzing Intellinetics (OTCMKTS:INLXD) and Smartsheet (NYSE:SMAR)

Intellinetics (OTCMKTS:INLXD) and Smartsheet (NYSE:SMAR) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Institutional and Insider Ownership

90.0% of Smartsheet shares are owned by institutional investors. 27.7% of Intellinetics shares are owned by company insiders. Comparatively, 4.5% of Smartsheet shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Intellinetics has a beta of 0.22, meaning that its stock price is 78% less volatile than the S&P 500. Comparatively, Smartsheet has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500.

Profitability

This table compares Intellinetics and Smartsheet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Intellinetics	-84.11%	N/A	-214.86%
Smartsheet	-0.80%	2.33%	1.12%

Analyst Ratings

This is a summary of recent ratings and target prices for Intellinetics and Smartsheet, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Intellinetics	0	0	0	0	0.00
Smartsheet	0	16	1	0	2.06

Smartsheet has a consensus target price of $57.00, indicating a potential upside of 0.94%. Given Smartsheet’s stronger consensus rating and higher possible upside, analysts plainly believe Smartsheet is more favorable than Intellinetics.

Earnings and Valuation

This table compares Intellinetics and Smartsheet”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Intellinetics	$2.54 million	1.96	-$2.13 million	($6.00)	-2.15
Smartsheet	$958.34 million	8.25	-$104.63 million	($0.06)	-941.17

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

Summary

Smartsheet beats Intellinetics on 11 of the 14 factors compared between the two stocks.

About Intellinetics

Intellinetics, Inc. develops, markets, and sells document solutions software to the public and private sectors in the United States. The company's software platform allows its customers to capture and manage documents across operations, such as scanned hard-copy documents and digital documents, including Microsoft Office 365, digital images, audios, videos, and emails. It offers IntelliCloud software platform solutions that include image processing modules, records management, workflow, and extended components. The company also provides installation, integration, training, and consulting services, as well as ongoing software maintenance and customer support services; and pre-installation assessment, project scoping, and implementation consulting services. It sells its products to resellers and directly to customers, as well as provides access to its software solutions as a service through the Internet. The company was formerly known as GlobalWise Investments, Inc. and changed its name to Intellinetics, Inc. in September 2014. Intellinetics, Inc. was founded in 1996 and is headquartered in Columbus, Ohio.

About Smartsheet

Smartsheet, Inc. engages in managing and automating collaborative work. Its platform provides solutions that eliminate the obstacles to capturing information, including a familiar and intuitive spreadsheet interface as well as easily customizable forms. The company was founded by W. Eric Browne, Maria Colacurcio, John D. Creason and Brent R. Frei in June 2005 and is headquartered in Bellevue, WA.