Inovalon (NASDAQ:INOV) and Brightcove (NASDAQ:BCOV) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, profitability, institutional ownership and earnings.
Insider & Institutional Ownership
32.4% of Inovalon shares are held by institutional investors. Comparatively, 79.2% of Brightcove shares are held by institutional investors. 50.9% of Inovalon shares are held by insiders. Comparatively, 4.9% of Brightcove shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares Inovalon and Brightcove’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Inovalon and Brightcove’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Inovalon||$449.36 million||4.67||$34.81 million||$0.23||59.87|
|Brightcove||$155.91 million||1.98||-$19.51 million||($0.48)||-17.90|
Inovalon has higher revenue and earnings than Brightcove. Brightcove is trading at a lower price-to-earnings ratio than Inovalon, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations and price targets for Inovalon and Brightcove, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Inovalon currently has a consensus price target of $12.00, indicating a potential downside of 12.85%. Brightcove has a consensus price target of $13.00, indicating a potential upside of 51.34%. Given Brightcove’s stronger consensus rating and higher possible upside, analysts clearly believe Brightcove is more favorable than Inovalon.
Risk and Volatility
Inovalon has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500. Comparatively, Brightcove has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500.
Inovalon beats Brightcove on 9 of the 14 factors compared between the two stocks.
Inovalon Holdings, Inc., a technology company, provides cloud-based platforms empowering a data-driven transformation from volume-based to value-based models in the healthcare industry. The company's platform enables the assessment and enhancement of clinical and quality outcomes and financial performance. It serves health plans and provider organizations, as well as pharmaceutical, medical device, and diagnostics companies. The company provides technology that supports approximately 500 healthcare organizations. Its platforms are informed by data pertaining to approximately 932,000 physicians; 455,000 clinical facilities; and approximately 240 million individuals and 37 billion medical events. Inovalon Holdings, Inc. was founded in 1998 and is headquartered in Bowie, Maryland.
Brightcove Inc. provides cloud-based services for video. The company offers Video Cloud, an online video platform that enables its customers to publish and distribute video to Internet-connected devices. Its Video Cloud platform offers various features and functionalities, such as uploading and encoding, content management, video player technology, multi-platform video experiences, live video streaming, distribution and syndication, social media, advertising and monetization, and analytics, as well as APIs, SDKs, and developer resources. The company also provides Zencoder, a cloud-based video encoding service with various features and functionalities, including file support, quality and control, speed and reliability, platform and security, and account and integration; SSAI, a cloud-based ad insertion and video stitching service; and Player, a cloud-based service for creating and managing video player experiences. In addition, it offers Video Marketing Suite, a suite of video technologies designed to address the needs of marketers to drive awareness, engagement, and conversion; OTT Flow, a service for media companies and content owners; and Enterprise video suite, an enterprise-class platform for internal communications, employee training, live streaming, marketing, and e-commerce videos. Further, the company provides account management, professional services, support, and online and onsite training services. Brightcove Inc. offers its products to media companies, broadcasters, publishers, brands, and corporations; and governments, educational institutions, and non-profit organizations through direct sales, referral partners, channel partners, and resellers in North America, Europe, Japan, the Asia Pacific, and internationally, as well as sells its products online. The company was formerly known as Video Marketplace, Inc. and changed its name to Brightcove Inc. in March 2005. Brightcove Inc. was founded in 2004 and is headquartered in Boston, Massachusetts.
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