Innodata (NASDAQ:INOD – Get Free Report) is one of 203 public companies in the “Professional Services” industry, but how does it compare to its peers? We will compare Innodata to related businesses based on the strength of its profitability, valuation, risk, institutional ownership, earnings, analyst recommendations and dividends.
Insider and Institutional Ownership
30.7% of Innodata shares are held by institutional investors. Comparatively, 57.4% of shares of all “Professional Services” companies are held by institutional investors. 11.8% of Innodata shares are held by insiders. Comparatively, 17.1% of shares of all “Professional Services” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Innodata and its peers top-line revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Innodata | $350.23 million | $32.18 million | 26.85 |
| Innodata Competitors | $3.39 billion | $228.40 million | 31.80 |
Innodata’s peers have higher revenue and earnings than Innodata. Innodata is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Risk and Volatility
Innodata has a beta of 3.11, meaning that its share price is 211% more volatile than the S&P 500. Comparatively, Innodata’s peers have a beta of 0.96, meaning that their average share price is 4% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations for Innodata and its peers, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Innodata | 0 | 2 | 2 | 1 | 2.80 |
| Innodata Competitors | 1614 | 6488 | 9176 | 433 | 2.48 |
Innodata currently has a consensus target price of $116.67, suggesting a potential upside of 217.16%. As a group, “Professional Services” companies have a potential upside of 26.63%. Given Innodata’s stronger consensus rating and higher possible upside, research analysts clearly believe Innodata is more favorable than its peers.
Profitability
This table compares Innodata and its peers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Innodata | 13.84% | 33.94% | 19.29% |
| Innodata Competitors | 0.34% | 36.79% | 4.44% |
Summary
Innodata peers beat Innodata on 7 of the 13 factors compared.
About Innodata
Innodata Inc. is a data engineering company that helps businesses develop and use artificial intelligence. Its services include preparing and annotating data for AI models, creating and managing training datasets, and providing support for generative AI applications. The company also provides digital content transformation and related services, converting and organizing information for use across digital platforms. Its work serves clients in industries that include technology, publishing, financial services and healthcare.
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