iPass (NASDAQ:IPAS) and Intersections (NASDAQ:INTX) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.

Earnings and Valuation

This table compares iPass and Intersections’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
iPass $54.40 million 0.50 -$20.55 million ($3.10) -1.05
Intersections $159.62 million 0.56 -$14.32 million N/A N/A

Intersections has higher revenue and earnings than iPass.

Risk & Volatility

iPass has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, Intersections has a beta of -0.71, suggesting that its stock price is 171% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for iPass and Intersections, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
iPass 0 2 2 0 2.50
Intersections 0 0 0 0 N/A

iPass currently has a consensus target price of $9.33, suggesting a potential upside of 187.18%. Given iPass’ higher possible upside, equities research analysts clearly believe iPass is more favorable than Intersections.

Institutional and Insider Ownership

13.8% of iPass shares are held by institutional investors. Comparatively, 23.9% of Intersections shares are held by institutional investors. 8.2% of iPass shares are held by company insiders. Comparatively, 58.5% of Intersections shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares iPass and Intersections’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
iPass -41.55% -130,046.80% -105.24%
Intersections 2.04% 406.15% 7.57%

Summary

Intersections beats iPass on 9 of the 12 factors compared between the two stocks.

About iPass

iPass Inc. provides mobile connectivity that enables Wi-Fi access on various mobile devices in the United States and internationally. It offers mobile connectivity services that provide cloud-based solution allowing customers and their users access to its Wi-Fi network to stay connected to the people and information. The company provides business to business mobile connectivity solutions to large and small enterprises, as well as to strategic partnerships comprising original equipment manufacturers, loyalty programs, software product and service providers, and communication companies; and iPass SmartConnect that takes the guesswork out of Wi-Fi automatically connecting customers to the hotspot for their needs. It operates hotspots at airports, hotels, train stations, convention centers, outdoor venues, inflight, and others. The company sells its services directly through its global sales force, as well as through reseller and strategic partners. iPass Inc. was founded in 1996 and is headquartered in Redwood Shores, California.

About Intersections

Intersections Inc. provides identity risk management and privacy protection services in the United States and Canada. The company's Personal Information Services segment offers privacy, personal information security, and identity theft monitoring and remediation services for consumers to understand, monitor, manage, and protect against the risks associated with their personal information. Its services include credit reports, credit monitoring, educational credit scores, and credit education; reports, monitoring, and education about other personal information and risks, such as public records, identity validation, new accounts, and Internet data risks; identity theft recovery services; identity theft cost reimbursement insurance; and software and other technology tools and services under the IDENTITY GUARD brand. This segment also offers breach response services to organizations responding to compromises of sensitive personal information; and Privacy Now with Watson, an identity theft monitoring and privacy advisory solution. The company's Insurance and Other Consumer Services segment provides insurance and membership products for consumers. Intersections Inc. was founded in 1996 and is headquartered in Chantilly, Virginia.

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