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

Institutional & Insider Ownership

87.6% of Iron Mountain shares are held by institutional investors. Comparatively, 59.2% of Tangoe shares are held by institutional investors. 1.5% of Iron Mountain shares are held by company insiders. Comparatively, 12.0% of Tangoe shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

Iron Mountain pays an annual dividend of $2.20 per share and has a dividend yield of 5.4%. Tangoe does not pay a dividend. Iron Mountain pays out 275.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Tangoe has raised its dividend for 7 consecutive years.

Earnings and Valuation

This table compares Iron Mountain and Tangoe’s top-line 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 $0.80 50.96
Tangoe N/A N/A N/A ($0.11) -46.36

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

Analyst Recommendations

This is a breakdown of current ratings for Iron Mountain and Tangoe, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Iron Mountain 1 1 2 0 2.25
Tangoe 0 1 0 0 2.00

Iron Mountain presently has a consensus target price of $40.50, indicating a potential downside of 0.66%. Tangoe has a consensus target price of $6.50, indicating a potential upside of 27.45%. Given Tangoe’s higher possible upside, analysts plainly believe Tangoe is more favorable than Iron Mountain.

Profitability

This table compares Iron Mountain and Tangoe’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%
Tangoe -7.96% -9.86% -7.97%

Volatility & Risk

Iron Mountain has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500. Comparatively, Tangoe has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500.

Summary

Iron Mountain beats Tangoe on 10 of the 14 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 Tangoe

Tangoe, Inc. is a provider of information technology (IT) and Telecom Expense Management (TEM) software and related services. The Company offers its services to a range of global enterprises and service providers. Its products and solutions include mobility, telecom, cloud, IT expense, strategic consulting and mobility as a service (MaaS). Its mobility solution includes expense management; procurement, logistics and activation; usage management; enterprise mobility; mobile support, and financial management. Its IT expense solution includes expense management, inventory and asset management, usage management and financial management. Its enterprise mobility and IT consulting services include strategic sourcing; strategy assessment, planning, and policy development, and implementation and transition support. The Company offers contract sourcing, strategy and policy consulting, service maturity assessment, global services benchmarking and lifecycle advisory, among others.

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