Windstream Holdings (NASDAQ: WIN) and Inventergy Global (NASDAQ:INVT) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitabiliy, risk, valuation, analyst recommendations, institutional ownership and dividends.

Valuation & Earnings

This table compares Windstream Holdings and Inventergy Global’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Windstream Holdings $5.38 billion 0.08 $1.78 billion ($2.91) -0.77
Inventergy Global $1.75 million 0.60 -$4.19 million N/A N/A

Windstream Holdings has higher revenue and earnings than Inventergy Global.

Analyst Ratings

This is a summary of current recommendations for Windstream Holdings and Inventergy Global, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Windstream Holdings 1 1 0 0 1.50
Inventergy Global 0 0 0 0 N/A

Dividends

Windstream Holdings pays an annual dividend of $0.60 per share and has a dividend yield of 26.9%. Inventergy Global does not pay a dividend. Windstream Holdings pays out -20.6% of its earnings in the form of a dividend.

Profitability

This table compares Windstream Holdings and Inventergy Global’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Windstream Holdings -6.03% -64.06% -2.31%
Inventergy Global -2,470.92% -3,411.44% -56.66%

Volatility and Risk

Windstream Holdings has a beta of 0.12, meaning that its stock price is 88% less volatile than the S&P 500. Comparatively, Inventergy Global has a beta of -0.44, meaning that its stock price is 144% less volatile than the S&P 500.

Institutional and Insider Ownership

70.7% of Windstream Holdings shares are owned by institutional investors. Comparatively, 4.1% of Inventergy Global shares are owned by institutional investors. 1.5% of Windstream Holdings shares are owned by insiders. Comparatively, 24.6% 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.

Summary

Windstream Holdings beats Inventergy Global on 9 of the 11 factors compared between the two stocks.

Windstream Holdings Company Profile

Windstream Corporation (Windstream) is a provider of advanced communications and technology solutions, including managed services and cloud computing, to businesses nationwide. In addition to business services, the Company offers broadband, voice and video services to consumers in primarily rural markets. It has operations in 48 states and the District of Columbia, a local and long-haul fiber network spanning approximately 115,000 miles, a robust business sales division and 21 data centers offering managed services and cloud computing. Windstream’s owned local networks consist of central office digital switches, routers, loop carriers and virtual and physical colocations interconnected with fiber, copper and microwaved facilities. A mix of fiber optic and copper facilities connect its customers with the core network. In December 2011, the Company announced that it has completed its acquisition of PAETEC Holding Corp.

Inventergy Global Company Profile

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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