EarthLink (ELNK) & Inventergy Global (INVT) Critical Analysis
EarthLink (NASDAQ: ELNK) and Inventergy Global (OTCMKTS:INVT) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, valuation, risk and earnings.
This table compares EarthLink and Inventergy Global’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
88.4% of EarthLink shares are owned by institutional investors. Comparatively, 0.1% of Inventergy Global shares are owned by institutional investors. 1.7% of EarthLink shares are owned by insiders. Comparatively, 9.8% of Inventergy Global shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This is a breakdown of current ratings and target prices for EarthLink and Inventergy Global, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
EarthLink currently has a consensus target price of $10.00, suggesting a potential upside of 77.62%. Given EarthLink’s higher probable upside, analysts plainly believe EarthLink is more favorable than Inventergy Global.
EarthLink pays an annual dividend of $0.20 per share and has a dividend yield of 3.6%. Inventergy Global does not pay a dividend. EarthLink pays out -23.8% of its earnings in the form of a dividend.
Earnings and Valuation
This table compares EarthLink and Inventergy Global’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Inventergy Global||$1.77 million||0.57||-$7.73 million||$0.89||0.06|
EarthLink has higher revenue, but lower earnings than Inventergy Global. EarthLink is trading at a lower price-to-earnings ratio than Inventergy Global, indicating that it is currently the more affordable of the two stocks.
Inventergy Global beats EarthLink on 6 of the 11 factors compared between the two stocks.
EarthLink, Inc. (EarthLink), is a network, communications and information technology (IT) services provider to business and residential customers in the United States. The Company operates in two segments: Business Services and Consumer Services. EarthLink’s Business Services segment provides a range of data, voice, managed IT and equipment services to business customers. Its Consumer Services segment provides nationwide Internet access and related value-added services to residential customers. EarthLink operates a network, including approximately 28,800 route miles of fiber, 90 metro fiber rings and four enterprise-class data centers and provides Internet protocol (IP) access services to customers across more than 90% of the United States. In April 2011, EarthLink acquired One Communications Corp. (One Communications). In July 2013, Earthlink Inc completed the acquisition CenterBeam Inc.
About Inventergy Global
Inventergy Global, Inc. is an intellectual property (IP) investment and licensing company. The Company offers clients a professional corporate licensing model for IP value creation. The Company’s Technical Lead and associated group works to understand the science and/or technology behind the patents of a particular portfolio, under the review of the Legal Lead and in support of the Business team. This group coordinates the work of third party technology consultants, including technical external resources, such as technical experts, reverse engineering consultancies and other providers, to deliver inputs to the Legal and Business teams. The Legal Lead and Team manage the existing patent asset portfolio from a global perspective and also manage further prosecution of continuing patent cases. The Legal Lead also is responsible for the legal structure and legal documents of any license or negotiated settlement with prospective licensees.
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