Intralinks (NYSE: IL) and Echelon (NASDAQ:ELON) are both technology companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, profitability, dividends, institutional ownership, valuation, analyst recommendations and earnings.

Profitability

This table compares Intralinks and Echelon’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Intralinks -1.63% -1.87% -1.13%
Echelon -14.96% -18.48% -13.66%

Insider and Institutional Ownership

91.2% of Intralinks shares are owned by institutional investors. Comparatively, 22.8% of Echelon shares are owned by institutional investors. 32.3% of Intralinks shares are owned by company insiders. Comparatively, 9.1% of Echelon shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Intralinks and Echelon, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Intralinks 0 0 0 0 N/A
Echelon 0 0 0 0 N/A

Earnings and Valuation

This table compares Intralinks and Echelon’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Intralinks N/A N/A N/A ($0.35) N/A
Echelon $32.38 million 0.66 -$4.10 million ($1.05) -4.53

Intralinks has higher earnings, but lower revenue than Echelon. Echelon is trading at a lower price-to-earnings ratio than Intralinks, indicating that it is currently the more affordable of the two stocks.

Summary

Intralinks beats Echelon on 6 of the 8 factors compared between the two stocks.

About Intralinks

Intralinks Holdings, Inc. is a technology provider of software-as-a-service (SaaS) solutions for secure enterprise content collaboration within and among organizations. The Company’s cloud-based solutions enable organizations to manage, control, track, search, exchange and collaborate on sensitive information inside and outside the firewall. Its solutions enables its customers to manage electronic information, accelerate information-intensive business processes, optimize critical information workflows, meet regulatory and risk management requirements, and collaborate with business counterparties. The Company delivers its solutions through a cloud-based model, making them available on-demand over the Internet using a multi-tenant SaaS architecture. The Company serves enterprises and governmental agencies across a range of industries, including financial services, pharmaceutical, manufacturing, biotechnology, consumer, energy, legal, professional services, insurance and technology.

About Echelon

Echelon Corporation develops open-standard control networking platforms and delivers elements necessary to design, install, monitor and control communities of devices. The Company’s products enable everyday devices, such as air conditioners, outdoor lighting, appliances, electricity meters, light switches, thermostats and valves to be inter-connected and be part of the Industrial Internet of Things (IIoT) market. It operates through the IIoT segment. Its IIoT business sells products and services that form embedded control platforms, such as LONWORKS and IzoT. The Company’s IIoT business also sells products and services, which include components, control nodes and development software. The Company also offers a solution consisting of outdoor lighting controllers, segment controllers, gateways and software to end customers, such as municipalities, cities, campuses and commercial enterprises. The Company markets its products under the Echelon brand.

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