Inovalon (NASDAQ:INOV) & Renren (NASDAQ:RENN) Head-To-Head Survey
Inovalon (NASDAQ:INOV) and Renren (NYSE:RENN) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, valuation, profitability, earnings and risk.
Risk and Volatility
Inovalon has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500. Comparatively, Renren has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500.
This table compares Inovalon and Renren’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Inovalon||$527.68 million||4.61||-$39.16 million||$0.18||87.56|
|Renren||$498.20 million||0.12||$72.54 million||$1.29||0.67|
Renren has lower revenue, but higher earnings than Inovalon. Renren is trading at a lower price-to-earnings ratio than Inovalon, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and price targets for Inovalon and Renren, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Inovalon currently has a consensus target price of $15.33, suggesting a potential downside of 2.71%. Given Inovalon’s higher probable upside, analysts clearly believe Inovalon is more favorable than Renren.
Institutional and Insider Ownership
32.6% of Inovalon shares are held by institutional investors. Comparatively, 1.6% of Renren shares are held by institutional investors. 50.4% of Inovalon shares are held by company insiders. Comparatively, 42.4% of Renren shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares Inovalon and Renren’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Inovalon beats Renren on 10 of the 13 factors compared between the two stocks.
Inovalon Company Profile
Inovalon Holdings, Inc., a technology company, provides cloud-based platforms empowering data-driven healthcare. It operates the Inovalon ONE Platform, a cloud-based platform that interconnect with the healthcare ecosystem to aggregate and analyze data in real-time, as well as empowers the application in resulting insights. The company also operates myABILITY software platform, an integrated set of cloud-based applications for providers that offers connectivity, administrative, clinical and quality analysis, management, and performance improvement capabilities to acute, post-acute, and ambulatory point-of-care provider facilities. In addition, it offers advisory, implementation, and support services. The company serves health plans and provider organizations, as well as pharmaceutical, medical device, and diagnostics companies. Its platforms include information of data pertaining to approximately 964,000 physicians; 519,000 clinical facilities; and approximately 264 million individuals and 42 billion medical events. Inovalon Holdings, Inc. was founded in 1998 and is headquartered in Bowie, Maryland.
Renren Company Profile
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.
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