Innodata (NASDAQ:INOD) vs. Betawave (OTCMKTS:BWAV) Financial Contrast

Betawave (OTCMKTS:BWAV) and Innodata (NASDAQ:INOD) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, institutional ownership and profitability.

Insider and Institutional Ownership

30.8% of Innodata shares are held by institutional investors. 15.2% of Innodata shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Betawave	N/A	N/A	N/A
Innodata	14.57%	44.38%	20.81%

Valuation & Earnings

This table compares Betawave 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
Betawave	N/A	N/A	N/A	N/A	N/A
Innodata	$86.78 million	15.16	-$910,000.00	$0.59	76.88

Betawave has higher earnings, but lower revenue than Innodata.

Analyst Ratings

This is a summary of current ratings and recommmendations for Betawave and Innodata, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Betawave	0	0	0	0	0.00
Innodata	0	0	5	0	3.00

Innodata has a consensus price target of $38.20, suggesting a potential downside of 15.78%. Given Betawave’s higher probable upside, equities research analysts plainly believe Betawave is more favorable than Innodata.

Volatility and Risk

Betawave has a beta of -7.39, indicating that its stock price is 839% less volatile than the S&P 500. Comparatively, Innodata has a beta of 2.56, indicating that its stock price is 156% more volatile than the S&P 500.

Summary

Innodata beats Betawave on 9 of the 10 factors compared between the two stocks.

About Betawave

Betawave Corporation provides online advertising services for a portfolio of websites. It delivers advertising to audiences of highly-engaged users. The company has a network of websites in three online categories: immersive casual gaming, virtual world, and social play and entertainment. It specializes in helping brand marketers reach the attentive audiences on various Web sites through ad formats. It serves advertisers in various categories, including consumer packaged goods, entertainment, consumer electronics and software, and retail. The company's advertising in the publisher sites includes direct sales category comprising IAB graphical advertising and rich media/immersive advertising; and remnant inventory category, which are advertising inventory on a website that is not sold directly to an advertiser. It sells its inventory and marketing services through a sales and marketing organization in the United States. The company was formerly known as GoFish Corporation and changed its name to Betawave Corporation in January 2009. Betawave Corporation was incorporated in 2003 and is based in San Francisco, California.

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.