Analyzing Technology Solutions (OTCMKTS:TSCC) & Innodata (NASDAQ:INOD)

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

Volatility and Risk

Technology Solutions has a beta of 4.26, indicating that its stock price is 326% more volatile than the S&P 500. Comparatively, Innodata has a beta of 2.9, indicating that its stock price is 190% more volatile than the S&P 500.

Valuation and Earnings

This table compares Technology Solutions and Innodata”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Technology Solutions	N/A	N/A	N/A	N/A	N/A
Innodata	$228.14 million	8.50	$28.66 million	$1.24	49.11

Innodata has higher revenue and earnings than Technology Solutions.

Insider and Institutional Ownership

30.8% of Innodata shares are held by institutional investors. 6.1% of Technology Solutions shares are held by company insiders. Comparatively, 15.2% of Innodata shares are held 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Technology Solutions	N/A	N/A	N/A
Innodata	18.71%	54.27%	32.29%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Technology Solutions and Innodata, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Technology Solutions	0	0	0	0	0.00
Innodata	0	1	4	1	3.00

Innodata has a consensus target price of $80.00, indicating a potential upside of 31.36%. Given Innodata’s stronger consensus rating and higher possible upside, analysts clearly believe Innodata is more favorable than Technology Solutions.

Summary

Innodata beats Technology Solutions on 10 of the 11 factors compared between the two stocks.

About Technology Solutions

Technology Solutions Company provides systems integration and information technology (IT) consulting services to the manufacturing and distribution, healthcare and life sciences, consumer products and retail, and financial services industry. Technology Solutions Company was founded in 1988 and is based in Chicago, Illinois.

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.