Iron Mountain (NYSE: IRM) and MobileSmith (OTCMKTS:MOST) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, risk, valuation, dividends and profitability.

Volatility and Risk

Iron Mountain has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500. Comparatively, MobileSmith has a beta of -44.5, indicating that its share price is 4,550% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Iron Mountain and MobileSmith, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Iron Mountain 1 1 2 0 2.25
MobileSmith 0 0 0 0 N/A

Iron Mountain presently has a consensus target price of $40.50, suggesting a potential downside of 0.66%. Given Iron Mountain’s higher probable upside, equities analysts plainly believe Iron Mountain is more favorable than MobileSmith.

Profitability

This table compares Iron Mountain and MobileSmith’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Iron Mountain 5.54% 15.49% 2.99%
MobileSmith -258.20% N/A -417.96%

Earnings & Valuation

This table compares Iron Mountain and MobileSmith’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Iron Mountain $3.51 billion 3.10 $104.82 million $0.81 50.33
MobileSmith N/A N/A N/A ($0.30) -6.60

Iron Mountain has higher revenue and earnings than MobileSmith. MobileSmith is trading at a lower price-to-earnings ratio than Iron Mountain, indicating that it is currently the more affordable of the two stocks.

Dividends

Iron Mountain pays an annual dividend of $2.20 per share and has a dividend yield of 5.4%. MobileSmith does not pay a dividend. Iron Mountain pays out 271.6% 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.

Insider and Institutional Ownership

87.6% of Iron Mountain shares are owned by institutional investors. 1.5% of Iron Mountain shares are owned 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.

Summary

Iron Mountain beats MobileSmith on 12 of the 13 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.

About MobileSmith

MobileSmith, Inc. develops and markets a software-as-a-service (SaaS) platform that allows non-programmers to design and build native mobile applications for smartphones and tablets. The Company’s product is the MobileSmith Platform (the Platform). The Company’s Platform is an application development platform that enables organizations to create, deploy and manage custom, native smartphone and tablet applications deliverable across iPhone operating system (iOS) and Android mobile platforms. The Company’s principal products and services include subscription to its SaaS cloud-based mobile application development platform to customers who design and build their own applications; internal and secure mobile development platform for the United States Department of Defense and related contractors; custom mobile application design and development services; mobile application marketing services, and mobile strategy implementation consulting.

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