Contrasting Renren (RENN) and iPass (IPAS)
Renren (NYSE:RENN) and iPass (NASDAQ:IPAS) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, valuation, dividends and risk.
Risk and Volatility
Renren has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500. Comparatively, iPass has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500.
This table compares Renren and iPass’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
1.4% of Renren shares are owned by institutional investors. Comparatively, 13.8% of iPass shares are owned by institutional investors. 42.4% of Renren shares are owned by insiders. Comparatively, 8.2% of iPass shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Renren and iPass’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Renren||$202.10 million||0.52||-$110.42 million||($1.61)||-0.94|
|iPass||$54.40 million||0.50||-$20.55 million||($3.10)||-1.05|
iPass has lower revenue, but higher earnings than Renren. iPass is trading at a lower price-to-earnings ratio than Renren, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and target prices for Renren and iPass, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
iPass has a consensus price target of $9.33, suggesting a potential upside of 187.18%. Given iPass’ higher possible upside, analysts plainly believe iPass is more favorable than Renren.
Renren beats iPass on 8 of the 13 factors compared between the two stocks.
Renren Inc. operates a social networking Internet platform in the People's Republic of China. It operates through two segments, Renren and Auto Group. The company operates Renren.com and Renren Mobile App that enable users to communicate and stay connected with friends, classmates, family members, and co-workers; and woxiu.com, a PC-based social video platform for users to stream their performances live to viewers. The company also sells used automobiles and related products; arranges financing options for customers through its financial services partners; provides credit financing for used automobile dealerships; and sells new cars, as well as provides value-added services, such as warranties, insurance, and after-sale products and services. It offers vehicles at its in-store showrooms; and through Kaixin Auto app, as well as through other online vertical channels, such as Autohome and 58.com. In addition, the company develops Chime, a software as a solution platform that offers lead generation and customer relationship management solutions for real estate professionals; and provides customizable lead capture landing pages that offer multiple home value estimates in the United States. Further, it provides online and mobile services for the trucking industry in the United States. The company was formerly known as Oak Pacific Interactive and changed its name to Renren Inc. in December 2010. Renren Inc. was founded in 2002 and is headquartered in Beijing, the People's Republic of China.
iPass Inc. provides mobile connectivity that enables Wi-Fi access on various mobile devices in the United States and internationally. It offers mobile connectivity services that provide cloud-based solution allowing customers and their users access to its Wi-Fi network to stay connected to the people and information. The company provides business to business mobile connectivity solutions to large and small enterprises, as well as to strategic partnerships comprising original equipment manufacturers, loyalty programs, software product and service providers, and communication companies; and iPass SmartConnect that takes the guesswork out of Wi-Fi automatically connecting customers to the hotspot for their needs. It operates hotspots at airports, hotels, train stations, convention centers, outdoor venues, inflight, and others. The company sells its services directly through its global sales force, as well as through reseller and strategic partners. iPass Inc. was founded in 1996 and is headquartered in Redwood Shores, California.
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