Critical Review: Iron Mountain (IRM) and MobileSmith (MOST)
Iron Mountain (NYSE: IRM) and MobileSmith (OTCMKTS:MOST) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, institutional ownership, earnings and valuation.
Earnings and Valuation
This table compares Iron Mountain and MobileSmith’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Iron Mountain||$3.51 billion||3.15||$104.82 million||$0.81||51.16|
Iron Mountain has higher revenue and earnings than MobileSmith. MobileSmith is trading at a lower price-to-earnings ratio than Iron Mountain, indicating that it is currently the more affordable of the two stocks.
Iron Mountain pays an annual dividend of $2.20 per share and has a dividend yield of 5.3%. MobileSmith does not pay a dividend. Iron Mountain pays out 271.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. MobileSmith has increased its dividend for 7 consecutive years.
This table compares Iron Mountain and MobileSmith’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
Iron Mountain has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500. Comparatively, MobileSmith has a beta of -44.5, indicating that its stock price is 4,550% less volatile than the S&P 500.
This is a summary of recent recommendations and price targets for Iron Mountain and MobileSmith, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Iron Mountain presently has a consensus price target of $40.50, indicating a potential downside of 2.27%. Given Iron Mountain’s higher possible upside, equities analysts clearly believe Iron Mountain is more favorable than MobileSmith.
Insider and Institutional Ownership
88.6% of Iron Mountain shares are held by institutional investors. 1.5% of Iron Mountain shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Iron Mountain beats MobileSmith on 11 of the 13 factors compared between the two stocks.
About Iron Mountain
Iron Mountain Incorporated (Iron Mountain) is engaged in storing records, primarily paper documents and data backup media, and provide information management services. The Company offers records management services, data protection and recovery services and information destruction services. Its information management services are divided into three categories: records management services, data protection and recovery services, and information destruction services. The Company’s records management services include flexible retrieval access, retention management and records management program development and implementation based on practices to help customers comply with specific regulatory requirements and policy-based programs. It provides data protection and recovery services for both physical and electronic records. The Company’s information destruction services consist primarily of physical secure shredding operations.
MobileSmith, Inc. develops and markets a software-as-a-service (SaaS) platform that allows non-programmers to design and build native mobile applications for smartphones and tablets. The Company’s product is the MobileSmith Platform (the Platform). The Company’s Platform is an application development platform that enables organizations to create, deploy and manage custom, native smartphone and tablet applications deliverable across iPhone operating system (iOS) and Android mobile platforms. The Company’s principal products and services include subscription to its SaaS cloud-based mobile application development platform to customers who design and build their own applications; internal and secure mobile development platform for the United States Department of Defense and related contractors; custom mobile application design and development services; mobile application marketing services, and mobile strategy implementation consulting.
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