Head to Head Contrast: Franklin Covey (NYSE:FC) & Innodata (NASDAQ:INOD)

Innodata (NASDAQ:INOD) and Franklin Covey (NYSE:FC) are both industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innodata	$251.66 million	9.14	$32.18 million	$1.32	50.71
Franklin Covey	$267.07 million	0.72	$3.07 million	$0.17	99.50

Innodata has higher earnings, but lower revenue than Franklin Covey. Innodata is trading at a lower price-to-earnings ratio than Franklin Covey, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Innodata	14.66%	37.79%	20.92%
Franklin Covey	0.83%	17.37%	4.04%

Insider & Institutional Ownership

30.7% of Innodata shares are owned by institutional investors. Comparatively, 69.9% of Franklin Covey shares are owned by institutional investors. 11.8% of Innodata shares are owned by company insiders. Comparatively, 15.2% of Franklin Covey shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Innodata has a beta of 2.88, meaning that its share price is 188% more volatile than the S&P 500. Comparatively, Franklin Covey has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Innodata and Franklin Covey, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innodata	0	2	1	1	2.75
Franklin Covey	1	1	2	0	2.25

Innodata presently has a consensus target price of $130.00, indicating a potential upside of 94.20%. Franklin Covey has a consensus target price of $27.50, indicating a potential upside of 62.58%. Given Innodata’s stronger consensus rating and higher possible upside, analysts plainly believe Innodata is more favorable than Franklin Covey.

Summary

Innodata beats Franklin Covey on 10 of the 15 factors compared between the two stocks.

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.

About Franklin Covey

Franklin Covey Co. provides training and consulting services in the areas of execution, sales performance, productivity, customer loyalty, and educational improvement for organizations and individuals worldwide. The company operates through Direct Offices, International Licensees, and Education Practice segments. It also provides a suite of individual-effectiveness and leadership-development training and products. In addition, the company operates Strive platform, a learning deployment platform; Impact platform that helps automate implementation of learning initiatives; All Access Pass, a subscription platform that enables improved deployment of content, services, technology, and metrics to deliver behavioral impact at scale; and Leader in Me, which provides access to digital versions of student leadership guides, leadership lessons, illustrated leadership stories, and other resources. Franklin Covey Co. was incorporated in 1983 and is headquartered in Salt Lake City, Utah.