SilverSun Technologies (NASDAQ:SSNT) vs. Innodata (NASDAQ:INOD) Critical Analysis

SilverSun Technologies (NASDAQ:SSNT) and Innodata (NASDAQ:INOD) are both small-cap business services companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, risk, valuation and dividends.

Profitability

This table compares SilverSun Technologies and Innodata’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SilverSun Technologies	-1.96%	-12.38%	-5.32%
Innodata	-1.05%	-4.14%	-1.68%

Analyst Ratings

This is a summary of current recommendations and price targets for SilverSun Technologies and Innodata, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SilverSun Technologies	0	0	0	0	N/A
Innodata	0	0	0	0	N/A

Risk & Volatility

SilverSun Technologies has a beta of 2.14, suggesting that its stock price is 114% more volatile than the S&P 500. Comparatively, Innodata has a beta of 1.96, suggesting that its stock price is 96% more volatile than the S&P 500.

Insider and Institutional Ownership

58.7% of SilverSun Technologies shares are held by institutional investors. Comparatively, 30.8% of Innodata shares are held by institutional investors. 37.8% of SilverSun Technologies shares are held by insiders. Comparatively, 18.2% of Innodata shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares SilverSun Technologies and Innodata’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SilverSun Technologies	$54.52 million	1.24	-$1.07 million	($0.20)	-63.45
Innodata	$86.78 million	2.10	-$910,000.00	($0.05)	-126.60

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

Summary

Innodata beats SilverSun Technologies on 7 of the 11 factors compared between the two stocks.

About SilverSun Technologies

SilverSun Technologies, Inc. operates as a business application, technology, and consulting company in North America. The company provides solutions for accounting and business management, financial reporting, enterprise resource planning, human capital management, warehouse management systems, customer relationship management, and business intelligence. It also offers value-added services that focuses on consulting and professional, specialized programming, training, and technical support services. In addition, the company provides information technology managed services, such as cybersecurity, application hosting, disaster recovery, business continuity, cloud, and other services; and data back-up, network maintenance, and upgrade services. It serves small and medium-sized businesses primarily in the manufacturing, distribution, and service industries. The company was formerly known as Trey Resources, Inc. and changed its name to SilverSun Technologies, Inc. in June 2011. SilverSun Technologies, Inc. is headquartered in East Hanover, New Jersey.

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.