Innodata (NASDAQ:INOD) & WISeKey International (NASDAQ:WKEY) Head to Head Analysis

Innodata (NASDAQ:INOD) and WISeKey International (NASDAQ:WKEY) are both small-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Innodata	14.57%	44.38%	20.81%
WISeKey International	N/A	N/A	N/A

Valuation and Earnings

This table compares Innodata and WISeKey International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innodata	$86.78 million	18.23	-$910,000.00	$0.59	92.48
WISeKey International	$30.92 million	1.57	-$15.36 million	N/A	N/A

Innodata has higher revenue and earnings than WISeKey International.

Risk and Volatility

Innodata has a beta of 2.57, suggesting that its share price is 157% more volatile than the S&P 500. Comparatively, WISeKey International has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Innodata and WISeKey International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innodata	0	0	5	0	3.00
WISeKey International	0	0	1	0	3.00

Innodata presently has a consensus price target of $38.20, indicating a potential downside of 29.99%. WISeKey International has a consensus price target of $4.00, indicating a potential downside of 33.00%. Given Innodata’s higher possible upside, research analysts clearly believe Innodata is more favorable than WISeKey International.

Institutional & Insider Ownership

30.8% of Innodata shares are owned by institutional investors. Comparatively, 0.3% of WISeKey International shares are owned by institutional investors. 15.2% of Innodata shares are owned by company insiders. Comparatively, 33.5% of WISeKey International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Innodata beats WISeKey International on 10 of the 11 factors compared between the two stocks.

About Innodata

Innodata Inc. operates as a global data engineering company in the United States, the United Kingdom, the Netherlands, Canada, and internationally. The company operates through three segments: Digital Data Solutions (DDS), Synodex, and Agility. The DDS segment engages in the provision of artificial intelligence (AI) data preparation services; collecting or creating training data; annotating training data; and training AI algorithms for its customers, as well as AI model deployment and integration services. This segment also provides a range of data engineering support services, including data transformation, data curation, data hygiene, data consolidation, data extraction, data compliance, and master data management. The Synodex segment offers an industry platform that transforms medical records into useable digital data with its proprietary data models or client data models. The Agility segment provides an industry platform that offers marketing communications and public relations professionals to target and distribute content to journalists and social media influencers; and to monitor and analyze global news channels, such as print, web, radio, and TV, as well as social media channels. It serves banking, insurance, financial services, technology, digital retailing, and information/media sectors through its professional staff, senior management, and direct sales personnel. The company was formerly known as Innodata Isogen, Inc. and changed its name to Innodata Inc. in June 2012. Innodata Inc. was incorporated in 1988 and is headquartered in Ridgefield Park, New Jersey.

About WISeKey International

WISeKey International Holding AG, a cybersecurity company, provides integrated security solutions in Switzerland, rest of Europe, the Middle East, Africa, North America, the Asia Pacific, and Latin America. The company operates in two segments, IoT and Managed Public Key Infrastructure (mPKI). It offers microcontrollers that provides identity to various connected devices; and mPKI, which include digital identity, certificate management and signing solutions, and trust services, as well as offers digital certificates; software as a service, including cloud-based certificate life-cycle-management and signing and authentication solutions; software licenses; post-contract customer support for cybersecurity applications; and infrastructure hosting and monitoring services. The company also develops, markets, hosts, and supports a range of solutions that enable secure digital identification of people, content, and objects by generating digital identities through its products and services in cybersecurity services, IoT, digital brand management, and mobile security, which enable clients to monetize their existing user bases, as well as expand its eco-system. In addition, it engages in financing, sales, and distribution activities; and sells semiconductors secure chips. The company was founded in 1999 and is headquartered in Zug, Switzerland.