Financial Analysis: GreenSky (NASDAQ:GSKY) versus Iota Communications (OTCMKTS:IOTC)

GreenSky (NASDAQ:GSKY) and Iota Communications (OTCMKTS:IOTC) are both business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, analyst recommendations and profitability.

Analyst Ratings

This is a summary of recent recommendations for GreenSky and Iota Communications, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GreenSky 0 2 0 0 2.00
Iota Communications 0 0 0 0 N/A

GreenSky currently has a consensus price target of $9.00, indicating a potential downside of 20.63%. Given GreenSky’s higher probable upside, analysts clearly believe GreenSky is more favorable than Iota Communications.

Insider & Institutional Ownership

36.3% of GreenSky shares are held by institutional investors. Comparatively, 0.0% of Iota Communications shares are held by institutional investors. 52.6% of GreenSky shares are held by insiders. Comparatively, 6.2% of Iota Communications shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares GreenSky and Iota Communications’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GreenSky 8.24% -31.34% 2.97%
Iota Communications N/A N/A N/A

Risk and Volatility

GreenSky has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500. Comparatively, Iota Communications has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500.

Valuation and Earnings

This table compares GreenSky and Iota Communications’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
GreenSky $525.65 million 3.97 $9.97 million $0.57 19.90
Iota Communications $2.31 million 0.14 -$56.78 million N/A N/A

GreenSky has higher revenue and earnings than Iota Communications.

Summary

GreenSky beats Iota Communications on 9 of the 10 factors compared between the two stocks.

GreenSky Company Profile

GreenSky, Inc. is a technology company. It operates as a lending platform that enables retailers, health-care providers and home contractors to offer loans to their customers. The company was founded by David Zalik in 2006 and is headquartered in Atlanta, GA.

Iota Communications Company Profile

Iota Communications, Inc. is a wireless carrier network system and applications platform dedicated to the Internet of things. It operates through the following segments: Iota Networks, Iota Commercial Solutions (ICS) and Iota Communications. The Iota Networks segment focuses on the first two stages of the IoT value chain, providing comprehensive solutions for connecting and collecting data for the customers in the company’s focused discipline. The ICS segment focuses on the commercialization of such technologies with applications based on data analytics and operations optimization within the IoT value chain. The Iota Communications segment operates activities related to running the company. Iota Communications was founded in 1998 and is headquartered in New Hope, PA.

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