Verisk Analytics (NASDAQ:VRSK) & Innodata (NASDAQ:INOD) Head-To-Head Contrast

Verisk Analytics (NASDAQ:VRSKGet Rating) and Innodata (NASDAQ:INODGet Rating) are both business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Valuation and Earnings

This table compares Verisk Analytics and Innodata’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Verisk Analytics $3.00 billion 8.78 $666.20 million $6.18 26.99
Innodata $69.75 million 2.00 -$1.67 million ($0.17) -30.20

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

Analyst Recommendations

This is a summary of current ratings and price targets for Verisk Analytics and Innodata, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Verisk Analytics 1 3 6 0 2.50
Innodata 0 0 0 0 N/A

Verisk Analytics presently has a consensus target price of $220.89, indicating a potential upside of 32.44%. Given Verisk Analytics’ higher probable upside, analysts plainly believe Verisk Analytics is more favorable than Innodata.

Insider and Institutional Ownership

91.3% of Verisk Analytics shares are owned by institutional investors. Comparatively, 17.0% of Innodata shares are owned by institutional investors. 1.8% of Verisk Analytics shares are owned by company insiders. Comparatively, 17.2% of Innodata shares are owned 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.

Risk & Volatility

Verisk Analytics has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500. Comparatively, Innodata has a beta of 1.91, indicating that its stock price is 91% more volatile than the S&P 500.

Profitability

This table compares Verisk Analytics and Innodata’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Verisk Analytics 32.92% 32.10% 11.29%
Innodata -6.52% -16.73% -8.36%

Summary

Verisk Analytics beats Innodata on 11 of the 13 factors compared between the two stocks.

Verisk Analytics Company Profile (Get Rating)

Verisk Analytics, Inc. provides data analytics solutions in the United States and internationally. The company provides predictive analytics and decision support solutions to customers in rating, underwriting, claims, catastrophe and weather risk, global risk analytics, natural resources intelligence, economic forecasting, commercial banking and finance, and various other fields. It operates in three segments: Insurance, Energy and Specialized Markets, and Financial Services. The Insurance segment focuses on the prediction of loss, selection and pricing of risk, and compliance with their reporting requirements for property and casualty customers, as well as develops machine learned and artificially intelligent models to forecast scenarios and produce standard and customized analytics that help its customers to manage their businesses, including detecting fraud before and after a loss event, and quantifying losses. The Energy and Specialized Markets segment provides data analytics for the natural resources value chain, including energy, chemicals, metals, mining, power, and renewables sectors; research and consulting services focusing on supporting customer capital allocation decisions, asset valuation and benchmarking, commodity markets, and corporate analysis; and consultancy services in the areas of business environment, business improvement, business strategies, commercial advisory, and transaction support, as well as analysis and advice on assets, companies, governments, and markets. The Financial Services segment offers benchmarking, decisioning algorithms, business intelligence, and customized analytic services to financial institutions, payment networks and processors, alternative lenders, regulators, and merchants. The company was founded in 1971 and is headquartered in Jersey City, New Jersey.

Innodata Company Profile (Get Rating)

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 offers AI-enabled software platforms and managed services to companies that require data for training AI and machine learning (ML) algorithms, and AI digital transformation solutions to help companies apply AI/ML for problems relating to analyzing and deriving insights from documents. This segment provides a range of data engineering support services, including data annotation, data transformation, data transformation, data curation, data hygiene, data consolidation, 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 provides 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.

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