Financial Survey: Amadeus IT Group (OTCMKTS:AMADY) vs. KLDiscovery (OTCMKTS:KLDI)

Amadeus IT Group (OTCMKTS:AMADY) and KLDiscovery (OTCMKTS:KLDI) are both technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, earnings, risk and analyst recommendations.

Earnings & Valuation

This table compares Amadeus IT Group and KLDiscovery”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amadeus IT Group	$7.37 billion	3.78	$1.51 billion	$3.53	17.53
KLDiscovery	$345.80 million	0.00	-$34.81 million	($1.32)	-0.00

Amadeus IT Group has higher revenue and earnings than KLDiscovery. KLDiscovery is trading at a lower price-to-earnings ratio than Amadeus IT Group, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

20.4% of KLDiscovery shares are owned by institutional investors. 31.6% of KLDiscovery shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Amadeus IT Group and KLDiscovery, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amadeus IT Group	1	2	3	1	2.57
KLDiscovery	0	0	0	0	0.00

Risk & Volatility

Amadeus IT Group has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, KLDiscovery has a beta of -0.9, suggesting that its share price is 190% less volatile than the S&P 500.

Profitability

This table compares Amadeus IT Group and KLDiscovery’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Amadeus IT Group	20.35%	28.72%	12.43%
KLDiscovery	N/A	N/A	N/A

Summary

Amadeus IT Group beats KLDiscovery on 12 of the 14 factors compared between the two stocks.

About Amadeus IT Group

Amadeus IT Group, S.A., together with its subsidiaries, operates as a transaction processor for the travel and tourism industry worldwide. The company operates through three segments: Air Distribution, Air IT Solutions, and Hospitality & Other Solutions. The company acts as an international network providing real-time search, pricing, booking, and ticketing services, and other processing solutions through Amadeus GDS, Altéa PSS, and New Skies platforms. It also offers travel providers a portfolio of technology solutions, which automate certain mission-critical business processes, such as reservations, inventory management, and departure control. In addition, the company is involved in the provision of software development and definition, software distribution, regional support, data processing, intermediation, computer consulting, installation of industrial machinery and equipment, consultancy and technology development services for payments, and information technology services; financial activities; and e-commerce business. It serves providers of travel products and services, such as airlines, airports, hotels, tour operators, insurance companies, land and sea transport companies, travel sellers and brokers, and travel buyers. The company was formerly known as Amadeus IT Holding, S.A. and changed its name to Amadeus IT Group, S.A. in August 2016. Amadeus IT Group, S.A. was founded in 1987 and is headquartered in Madrid, Spain.

About KLDiscovery

KLDiscovery Inc. provides eDiscovery, information governance, and data recovery solutions to corporations, law firms, insurance companies, and individuals worldwide. The company offers Nebula, an end-to-end eDiscovery solution that facilitates smarter ways to cull, process, review, and manage documents in an intuitive interface; Client Portal for consolidated visualizations and reporting for portfolio intelligence; KLD Processing, a proprietary processing application; ReadySuite to perform extensive QC on a production, normalize inbound submissions, or spot check the work of a colleague or supplier; Relativity for relativity enhancements and state-of-the-art HIVE infrastructure; Nebula Processing to process data with a higher degree of quality; and Nebula AI, a technology assisted review tool combined with a deep bench of experts, as well as managed services, remote document review, and managed document review services. It also provides computer forensics, ransomware data recovery, remote collection manager, data recovery, and data collection services. In addition, the company offers Nebula Archive, an advanced archiving solution for modern enterprise data management needs at scale; Nebula Intelligent Archive, a digital communications compliance platform with machine learning and analytics; and Office 365 Migration and Management, as well as information governance and advisory services. Further, it provides Ontrack EasyRecovery that allows clients to perform precise file recovery of data lost through deletion, reformatting, and various other data loss scenarios; Ontrack PowerControls, a granular restore software product; email extraction, tape solutions, and data destruction solutions; and professional services. KLDiscovery Inc. was founded in 1985 and is headquartered in Eden Prairie, Minnesota.