WISeKey International (NASDAQ:WKEY) & Innodata (NASDAQ:INOD) Critical Survey

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
WISeKey International	N/A	N/A	N/A
Innodata	16.81%	66.36%	31.77%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WISeKey International	$30.92 million	1.45	-$15.36 million	N/A	N/A
Innodata	$170.46 million	10.53	-$910,000.00	$0.85	72.81

Innodata has higher revenue and earnings than WISeKey International.

Institutional & Insider Ownership

0.3% of WISeKey International shares are owned by institutional investors. Comparatively, 30.8% of Innodata shares are owned by institutional investors. 33.5% of WISeKey International shares are owned by insiders. Comparatively, 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 company is poised for long-term growth.

Risk and Volatility

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

Analyst Ratings

This is a summary of recent recommendations for WISeKey International and Innodata, as provided by MarketBeat.

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

WISeKey International presently has a consensus price target of $4.00, indicating a potential downside of 27.54%. Innodata has a consensus price target of $53.00, indicating a potential downside of 14.36%. Given Innodata’s higher probable upside, analysts clearly believe Innodata is more favorable than WISeKey International.

Summary

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

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.

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.