Iron Mountain (IRM) and IDI (COGT) Critical Survey
Iron Mountain (NYSE: IRM) and IDI (NASDAQ:COGT) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, risk, dividends and analyst recommendations.
Institutional and Insider Ownership
86.0% of Iron Mountain shares are held by institutional investors. Comparatively, 8.5% of IDI shares are held by institutional investors. 1.5% of Iron Mountain shares are held by insiders. Comparatively, 53.3% of IDI shares are held by 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.
This is a summary of current ratings and price targets for Iron Mountain and IDI, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Iron Mountain presently has a consensus price target of $35.00, suggesting a potential downside of 6.39%. IDI has a consensus price target of $9.17, suggesting a potential upside of 90.97%. Given IDI’s stronger consensus rating and higher probable upside, analysts plainly believe IDI is more favorable than Iron Mountain.
This table compares Iron Mountain and IDI’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Iron Mountain and IDI’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Iron Mountain||$3.77 billion||2.62||$1.21 billion||$0.74||50.53|
|IDI||$210.16 million||1.25||-$24.40 million||($0.89)||-5.39|
Iron Mountain has higher revenue and earnings than IDI. IDI is trading at a lower price-to-earnings ratio than Iron Mountain, indicating that it is currently the more affordable of the two stocks.
Iron Mountain pays an annual dividend of $2.20 per share and has a dividend yield of 5.9%. IDI does not pay a dividend. Iron Mountain pays out 297.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Iron Mountain has raised its dividend for 7 consecutive years.
Volatility & Risk
Iron Mountain has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500. Comparatively, IDI has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500.
Iron Mountain beats IDI on 11 of the 16 factors compared between the two stocks.
About Iron Mountain
Iron Mountain Incorporated (Iron Mountain) is engaged in storing records, primarily paper documents and data backup media, and provide information management services. The Company offers records management services, data protection and recovery services and information destruction services. Its information management services are divided into three categories: records management services, data protection and recovery services, and information destruction services. The Company’s records management services include flexible retrieval access, retention management and records management program development and implementation based on practices to help customers comply with specific regulatory requirements and policy-based programs. It provides data protection and recovery services for both physical and electronic records. The Company’s information destruction services consist primarily of physical secure shredding operations.
IDI, Inc., formerly Tiger Media, Inc., is a data and analytics company providing information and marketing solutions to businesses in a range of industries. The Company operates through two segments: Information Services and Performance Marketing. The Company serves the risk management and the consumer marketing industries through its consolidated subsidiaries, Interactive Data, LLC and Fluent, LLC, respectively. Interactive Data, LLC provides information solutions to a set of industries, including insurance, healthcare, corporate risk, law enforcement, government, collections, retail and legal. Fluent provides people-based, digital marketing solutions to consumer brands and direct marketers utilizing Fluent’s audience data and technology. The products within Information Services segment include idiCORE, idiBASIC, idiVERIFIED, Batch Processing, Hosted Customer Acquisition and Audience Now. Products within the Performance Marketing segment include LiveConnect and Display Advertising.
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