Innodata (NASDAQ:INOD – Get Free Report) and Clarivate (NYSE:CLVT – Get Free Report) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.
Institutional & Insider Ownership
30.8% of Innodata shares are held by institutional investors. Comparatively, 85.7% of Clarivate shares are held by institutional investors. 15.2% of Innodata shares are held by insiders. Comparatively, 23.1% of Clarivate shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Risk & Volatility
Innodata has a beta of 2.56, suggesting that its share price is 156% more volatile than the S&P 500. Comparatively, Clarivate has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Innodata | 14.57% | 44.38% | 20.81% |
| Clarivate | -50.00% | 9.69% | 3.97% |
Analyst Ratings
This is a summary of current ratings and recommmendations for Innodata and Clarivate, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Innodata | 0 | 0 | 5 | 0 | 3.00 |
| Clarivate | 1 | 3 | 2 | 0 | 2.17 |
Innodata presently has a consensus target price of $38.20, suggesting a potential downside of 3.92%. Clarivate has a consensus target price of $7.10, suggesting a potential upside of 44.90%. Given Clarivate’s higher probable upside, analysts plainly believe Clarivate is more favorable than Innodata.
Earnings & Valuation
This table compares Innodata and Clarivate”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Innodata | $137.39 million | 8.39 | -$910,000.00 | $0.59 | 67.39 |
| Clarivate | $2.58 billion | 1.35 | -$911.20 million | ($1.99) | -2.46 |
Innodata has higher earnings, but lower revenue than Clarivate. Clarivate is trading at a lower price-to-earnings ratio than Innodata, indicating that it is currently the more affordable of the two stocks.
Summary
Innodata beats Clarivate on 10 of the 14 factors compared between the two stocks.
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.
About Clarivate
Clarivate Plc operates as an information services provider in the Americas, the Middle East, Africa, Europe, and the Asia Pacific. It operates through three segments: Academia & Government, Life Sciences & Healthcare, and Intellectual Property. The company offers Web of Science and InCites, that analyzes and explores the academic research landscape and manages research information; ProQuest One and Ebook Central that provides comprehensive content collections to institutions in a cost-effective manner; and Alma and Polaris, that manages academic resources and services, connect users, and support research publications. It also provides Patent and Trademark Renewals, that supports paralegal and admin tasks throughout the patent and trademark protection and maintenance process; CompuMark and Derwent, that supports critical decisions around patent and trademark protection, risk, and value creation throughout the innovation and brand lifecycle; IPFolio and Foundation IP that creates a structured environment for the protection and management of global patent and trademark assets. In addition, the company offers Cortellis Competitive Intelligence and Cortellis Drug Discovery Intelligence, that supports the development of new drugs and medical devices from discovery to clinical trials; Cortellis Regulatory Intelligence and OFF-X to monitor drug safety issues and adhere to regulatory protocols; Real World Data and Optimize that inform commercial launch strategy and set pricing for optimal reimbursement. It serves corporations, universities, law firms, government agencies, public libraries, and other professional services organizations. The company was formerly known as Clarivate Analytics Plc and changed its name to Clarivate Plc in May 2020. Clarivate Plc was founded in 1864 and is headquartered in London, the United Kingdom.
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