Critical Survey: Acxiom (ACXM) and Inovalon (INOV)
Acxiom (NASDAQ: INOV) and Inovalon (NASDAQ:INOV) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, analyst recommendations, earnings, institutional ownership and dividends.
Earnings and Valuation
This table compares Acxiom and Inovalon’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Acxiom||$917.41 million||4.30||$23.48 million||$0.44||115.68|
|Inovalon||$449.36 million||3.62||$34.81 million||$0.23||46.30|
This is a summary of recent ratings and recommmendations for Acxiom and Inovalon, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Acxiom currently has a consensus price target of $46.00, suggesting a potential downside of 9.63%. Inovalon has a consensus price target of $12.00, suggesting a potential upside of 12.68%. Given Inovalon’s higher probable upside, analysts clearly believe Inovalon is more favorable than Acxiom.
Volatility and Risk
Acxiom has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500. Comparatively, Inovalon has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500.
Institutional and Insider Ownership
94.5% of Acxiom shares are owned by institutional investors. Comparatively, 34.0% of Inovalon shares are owned by institutional investors. 3.5% of Acxiom shares are owned by insiders. Comparatively, 50.9% of Inovalon shares are owned by 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.
This table compares Acxiom and Inovalon’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Acxiom beats Inovalon on 11 of the 14 factors compared between the two stocks.
Acxiom Corporation operates a technology and enablement services company in the United States, Europe, the Asia-Pacific, and internationally. The company operates through three segments: Connectivity, Audience Solutions, and Marketing Services. The Connectivity segment provides a foundational identity resolution layer, which enables its clients to identify and reach consumers across channels and measure the impact of marketing on sales. This segment offers LiveRamp IdentityLink, an identity resolution service that ties data back to real people and makes it possible to onboard that data for people-based marketing initiatives across digital channels. Its IdentityLink serves brands and agencies, marketing technology providers, data owners, and publishers. The Audience Solutions segment offers consumer demographics products, including InfoBase products to marketers with the ability to identify and reach the right audience with the right message across traditional and digital channels; and AbiliTec, which enables brands recognize individuals and households using various types of input variables and connect identities online and offline. The Marketing Services segment offers marketing database services, and strategy and analytics. The company serves companies and organizations in the financial services, insurance, information services, direct marketing, retail, consumer packaged goods, technology, automotive, healthcare, travel, and communications industries, as well as in the non-profit and government sectors. Acxiom Corporation was founded in 1969 and is headquartered in Conway, Arkansas.
Inovalon Holdings, Inc., a technology company, provides cloud-based platforms empowering a data-driven transformation from volume-based to value-based models in the healthcare industry. The company's platform enables the assessment and enhancement of clinical and quality outcomes and financial performance. It serves health plans and provider organizations, as well as pharmaceutical, medical device, and diagnostics companies. The company provides technology that supports approximately 500 healthcare organizations. Its platforms are informed by data pertaining to approximately 932,000 physicians; 455,000 clinical facilities; and approximately 240 million individuals and 37 billion medical events. Inovalon Holdings, Inc. was founded in 1998 and is headquartered in Bowie, Maryland.
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