Head to Head Survey: Innodata (INOD) vs. Fang (SFUN)

Innodata (NASDAQ:INOD) and Fang (NYSE:SFUN) are both small-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.

Insider & Institutional Ownership

26.2% of Innodata shares are held by institutional investors. Comparatively, 41.5% of Fang shares are held by institutional investors. 13.4% of Innodata shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Innodata -2.39% -2.31% -1.51%
Fang -16.21% 10.25% 3.67%

Earnings and Valuation

This table compares Innodata and Fang’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Innodata $57.42 million 0.58 N/A N/A N/A
Fang $444.30 million 1.56 $21.70 million $0.02 78.00

Fang has higher revenue and earnings than Innodata.

Analyst Ratings

This is a summary of recent recommendations and price targets for Innodata and Fang, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Innodata 0 0 0 0 N/A
Fang 2 1 0 0 1.33

Fang has a consensus price target of $2.24, suggesting a potential upside of 43.38%. Given Fang’s higher possible upside, analysts plainly believe Fang is more favorable than Innodata.

Risk & Volatility

Innodata has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500. Comparatively, Fang has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500.

Summary

Fang beats Innodata on 7 of the 9 factors compared between the two stocks.

About Innodata

Innodata Inc., a digital services and solutions company, provides technology solutions and services worldwide. The company operates through three segments: Digital Data Solutions (DDS), Innodata Advanced Data Solutions (IADS), and Media Intelligence Solutions (MIS). The DDS segment produces and distributes e-books; develops new digital information products; and provides operational support services for existing digital information products and systems, including content aggregation, extraction, encoding, indexing and abstracting, fabrication, and distribution. The IADS segment offers services that enable clients in the financial services, insurance, medical, and healthcare sectors to enhance decision-support through digital technologies. This segment provides APS.Extract for use with life insurance underwriting and claims; and docGenix system that extracts and classifies data from unstructured legal documents to enhance an organization's ability to analyze documentation and feed actionable data to downstream applications. The MIS segment provides media monitoring and analysis solutions, and professional services; and publishes Bulldog Reporter's Daily Dog, a daily e-newsletter; and Inside Health Media, a daily online newsletter, as well as offers media list and media intelligence services. This segment's technology platform monitors, aggregates, analyzes, and distributes content across traditional and digital media. The company serves publishers, media and information companies, digital retailers, banks, insurance companies, government agencies, and other industries through its professional staff, senior management, and direct sales personnel. Innodata Inc. was founded in 1988 and is headquartered in Ridgefield Park, New Jersey.

About Fang

Fang Holdings Limited operates a real estate Internet portal in the People's Republic of China. The company's portal offers listing, marketing, e-commerce, financial, and other value-added services. It supports active online communities and networks of users seeking information on, and services for, the real estate and home-related sectors. The company was formerly known as SouFun Holdings Limited and changed its name to Fang Holdings Limited in September 2016. Fang Holdings Limited was founded in 1999 and is headquartered in Beijing, China.

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