Bitauto (NYSE:BITA) and Innodata (NASDAQ:INOD) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Volatility & Risk

Bitauto has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500. Comparatively, Innodata has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500.

Insider and Institutional Ownership

27.9% of Bitauto shares are held by institutional investors. Comparatively, 26.8% of Innodata shares are held by institutional investors. 17.0% of Bitauto shares are held by company insiders. Comparatively, 11.4% of Innodata shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Bitauto and Innodata, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bitauto 0 3 2 0 2.40
Innodata 0 0 0 0 N/A

Bitauto currently has a consensus price target of $24.80, indicating a potential upside of 144.82%. Given Bitauto’s higher possible upside, equities analysts clearly believe Bitauto is more favorable than Innodata.

Earnings & Valuation

This table compares Bitauto and Innodata’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bitauto $1.54 billion 0.48 -$87.68 million $1.40 7.24
Innodata $57.42 million 0.44 N/A N/A N/A

Innodata has lower revenue, but higher earnings than Bitauto.

Profitability

This table compares Bitauto and Innodata’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bitauto -3.57% 1.93% 0.66%
Innodata -2.73% -2.92% -1.85%

Summary

Bitauto beats Innodata on 9 of the 10 factors compared between the two stocks.

About Bitauto

Bitauto Holdings Limited, through its subsidiaries, provides Internet content and marketing services, and transaction services for the automobile industry in the People's Republic of China. It operates in three segments: Advertising and Subscription Business, Transaction Services Business, and Digital Marketing Solutions Business. The Advertising and Subscription Business segment offers advertising services, including automobile pricing and promotional information, specifications, reviews, and consumer feedback to automakers through its bitauto.com Website and related mobile applications. It also provides transaction-focused online advertisement and promotional services for automakers, automobile dealers, auto finance partners, and insurance companies; and Web-based and mobile-based integrated digital marketing solutions to automobile dealers. The Transaction Services Business segment operates an online automobile retail transaction platform, which provides transaction platform and self-operated financing services. The Digital Marketing Solutions Business segment offers one-stop digital marketing solutions, including Website creation and maintenance, online public relation, online marketing campaign, advertising agency, big data application, and digital image creation services for automakers. The company also distributes its dealer customers' automobile pricing and promotional information through its Internet service provider partners. Bitauto Holdings Limited was founded in 2000 and is headquartered in Beijing, the People's Republic of China.

About Innodata

Innodata Inc. operates as a digital services and solution company worldwide. The company operates through three segments: Digital Data Solutions (DDS), Synodex, and Agility PR Solutions (Agility). The DDS segment combines deep neural networks and human expertise to make unstructured information useable for various domains, including health, science, and law. The Synodex segment transforms medical records into useable digital data and applies technologies to the digital data to augment decision support. The Agility segment offers various tools and related professional services, such as content amplification solution, integrated newswire services, an influencer targeting solution to help PR professionals identify influencers, and media monitoring and analysis solution. This segment also provides media monitoring and PR measurement; and PR reporting and measurement services, including custom reports and PR measurement and social media/influencer analysis, as well as Bulldog Reporter, a publisher of PR-related news and a popular e-newsletter, and Bulldog Awards, a PR awards program that recognizes outstanding performance among PR and communications professionals and agencies. In addition, it provides various services, including acquisition, transformation, and digital data enrichment. In addition, the company offers digital operations management and analytics, such as IP rights, contract, publishing workflow, publisher relationship, and transaction management, as well as provides customer relations, data processing, and regulatory reporting services. Further, it develops and maintains content applications. The company serves banking and financial services, technology, digital retailing, healthcare, science, and insurance sector through its professional staff, senior management, and direct sales personnel. Innodata Inc. was founded in 1988 and is headquartered in Ridgefield Park, New Jersey.

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