Benefitfocus (NASDAQ:BNFT) and Intellicheck (NASDAQ:IDN) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, valuation, profitability, analyst recommendations, risk, dividends and earnings.
Analyst Ratings
This is a summary of current ratings for Benefitfocus and Intellicheck, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Benefitfocus | 0 | 2 | 2 | 0 | 2.50 |
| Intellicheck | 0 | 0 | 2 | 0 | 3.00 |
Benefitfocus presently has a consensus price target of $16.25, indicating a potential upside of 12.22%. Intellicheck has a consensus price target of $16.50, indicating a potential upside of 88.14%. Given Intellicheck's stronger consensus rating and higher possible upside, analysts plainly believe Intellicheck is more favorable than Benefitfocus.
Profitability
This table compares Benefitfocus and Intellicheck's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Benefitfocus | -11.18% | N/A | -8.61% |
| Intellicheck | -5.64% | -3.57% | -3.06% |
Earnings and Valuation
This table compares Benefitfocus and Intellicheck's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Benefitfocus | $295.69 million | 1.59 | $-45,510,000.00 | ($1.29) | -11.22 |
| Intellicheck | $7.66 million | 21.29 | $-2,550,000.00 | ($0.16) | -54.81 |
Intellicheck has lower revenue, but higher earnings than Benefitfocus. Intellicheck is trading at a lower price-to-earnings ratio than Benefitfocus, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Benefitfocus has a beta of 1.78, indicating that its share price is 78% more volatile than the S&P 500. Comparatively, Intellicheck has a beta of 2.23, indicating that its share price is 123% more volatile than the S&P 500.
Insider and Institutional Ownership
81.6% of Benefitfocus shares are held by institutional investors. Comparatively, 47.5% of Intellicheck shares are held by institutional investors. 10.4% of Benefitfocus shares are held by company insiders. Comparatively, 8.8% of Intellicheck shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary
Intellicheck beats Benefitfocus on 8 of the 13 factors compared between the two stocks.
