Head to Head Contrast: Innodata (NASDAQ:INOD) and Reddit (NYSE:RDDT)

Reddit (NYSE:RDDT) and Innodata (NASDAQ:INOD) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, profitability, dividends, institutional ownership, risk and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for Reddit and Innodata, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reddit	1	6	9	2	2.67
Innodata	0	0	3	0	3.00

Reddit presently has a consensus target price of $66.12, suggesting a potential upside of 0.30%. Innodata has a consensus target price of $27.67, suggesting a potential upside of 64.98%. Given Innodata’s stronger consensus rating and higher probable upside, analysts clearly believe Innodata is more favorable than Reddit.

Earnings & Valuation

This table compares Reddit and Innodata”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Reddit	$981.41 million	10.98	-$90.82 million	N/A	N/A
Innodata	$107.34 million	4.49	-$910,000.00	$0.06	279.50

Innodata has lower revenue, but higher earnings than Reddit.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Reddit	N/A	N/A	N/A
Innodata	2.79%	11.41%	4.89%

Insider and Institutional Ownership

30.8% of Innodata shares are owned by institutional investors. 15.2% of Innodata shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Innodata beats Reddit on 8 of the 12 factors compared between the two stocks.

About Reddit

Reddit, Inc. operates a website that organizes digital communities. It organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another. The company was founded in 2005 and is headquartered in San Francisco, California.

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.