Scrypt (OTCMKTS:SYPT) versus Intellinetics (OTCMKTS:INLX) Critical Review

Scrypt (OTCMKTS:SYPT) and Intellinetics (OTCMKTS:INLX) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, profitability, earnings, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Scrypt and Intellinetics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Scrypt	0	0	0	0	N/A
Intellinetics	0	0	0	0	N/A

Profitability

This table compares Scrypt and Intellinetics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Scrypt	N/A	N/A	N/A
Intellinetics	4.09%	7.71%	3.42%

Insider and Institutional Ownership

0.8% of Intellinetics shares are held by institutional investors. 32.8% of Scrypt shares are held by insiders. Comparatively, 8.4% of Intellinetics shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Scrypt and Intellinetics’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Scrypt	N/A	N/A	N/A	($0.76)	0.00
Intellinetics	$16.89 million	1.79	$20,000.00	$0.13	56.46

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

Summary

Intellinetics beats Scrypt on 7 of the 8 factors compared between the two stocks.

About Scrypt

Scrypt, Inc. develops and provides document management and delivery solutions for regulated industries. It offers Sfax that enables users to cloud fax without printing a physical document; Stak, a healthcare document platform that transforms the workflow through a cloud-based environment; and DocbookMD, a messaging application for physicians. The company also provides XDOC, an electronic document management system that simplifies the mortgage lending process; and FaxAgent, a fax solution. It serves healthcare and lending clients, as well as service providers. The company was formerly known as SecureCare Technologies, Inc. and changed its name to Scrypt, Inc. in March 2014. Scrypt, Inc. is based in Austin, Texas.

About Intellinetics

Intellinetics, Inc. designs, develops, tests, markets, and licenses document services and software solutions in the United States. The company operates in two segments, Document Management and Document Conversion. Its software platform allows its customers to capture and manage documents across operations, such as scanned hard-copy documents and digital documents, including Microsoft Office 365, digital images, audios, videos, and emails. The company's flagship software suite includes IntelliCloud platform that comprises image processing modules, records management, workflow, and extended components. It also provides installation, integration, training, and consulting services; ongoing software maintenance and customer support services; and digital scanning, microfilm and microfiche, box storage, scanning equipment, and software and repair services, as well as long-term paper and microfilm storage, and retrieval option services. In addition, the company offers business process outsourcing services. Intellinetics, Inc. sells its products to resellers and directly to customers, as well as provides access to its software solutions as a service through the Internet. It serves business and federal, county, and municipal governments, as well as healthcare, K-12 education, public safety, other public sector, risk management, financial services, and others. The company was formerly known as GlobalWise Investments, Inc. and changed its name to Intellinetics, Inc. in September 2014. Intellinetics, Inc. is headquartered in Columbus, Ohio.