Head to Head Review: Autodesk (NASDAQ:ADSK) vs. InterDigital (NASDAQ:IDCC)

Autodesk (NASDAQ:ADSK) and InterDigital (NASDAQ:IDCC) are both technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, risk, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Volatility & Risk

Autodesk has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500. Comparatively, InterDigital has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500.

Profitability

This table compares Autodesk and InterDigital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Autodesk	21.08%	58.63%	15.10%
InterDigital	38.32%	28.17%	15.00%

Insider & Institutional Ownership

90.2% of Autodesk shares are owned by institutional investors. Comparatively, 99.8% of InterDigital shares are owned by institutional investors. 0.1% of Autodesk shares are owned by company insiders. Comparatively, 3.5% of InterDigital shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Autodesk and InterDigital”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Autodesk	$7.21 billion	6.13	$1.12 billion	$7.73	27.36
InterDigital	$834.02 million	10.60	$406.64 million	$8.67	39.50

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Autodesk and InterDigital, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Autodesk	0	6	24	1	2.84
InterDigital	0	1	3	1	3.00

Autodesk presently has a consensus target price of $321.19, suggesting a potential upside of 51.87%. InterDigital has a consensus target price of $416.67, suggesting a potential upside of 21.68%. Given Autodesk’s higher possible upside, research analysts clearly believe Autodesk is more favorable than InterDigital.

Summary

InterDigital beats Autodesk on 8 of the 14 factors compared between the two stocks.

About Autodesk

Autodesk, Inc. provides 3D design, engineering, and entertainment technology solutions worldwide. The company offers AutoCAD Civil 3D, a surveying, design, analysis, and documentation solution for civil engineering, including land development, transportation, and environmental projects; BuildingConnected, a SaaS preconstruction solution; AutoCAD, a software for professional design, drafting, detailing, and visualization; AutoCAD LT, a drafting and detailing software; computer-aided manufacturing (CAM) software for computer numeric control machining, inspection, and modelling for manufacturing; Fusion 360, a 3D CAD, CAM, and computer-aided engineering tool; and Industry Collections tools for professionals in architecture, engineering and construction, product design and manufacturing, and media and entertainment collection industries. It also provides Inventor tools for 3D mechanical design, simulation, analysis, tooling, visualization, and documentation; Vault, a data management software to manage data in one central location, accelerate design processes, and streamline internal/external collaboration; Maya and 3ds Max software products that offer 3D modeling, animation, effects, rendering, and compositing solutions; and ShotGrid, a cloud-based software for review and production tracking in the media and entertainment industry. It sells its products and services to customers directly, as well as through a network of resellers and distributors. Autodesk, Inc. was incorporated in 1982 and is headquartered in San Francisco, California.

About InterDigital

InterDigital, Inc. operates as a global research and development company with focus primarily on wireless, visual, artificial intelligence (AI), and related technologies. The company engages in the design and development of technologies that enable connected in a range of communications and entertainment products and services, which are licensed to companies providing such products and services, including makers of wireless communications, consumer electronics, IoT devices, and cars and other motor vehicles, as well as providers of cloud-based services, such as video streaming. It designs and develops a range of innovations for use in digital cellular and wireless products and networks, including 2G, 3G, 4G, 5G, and IEEE 802-related products and networks. The company also develops cellular technologies, such as technologies related to CDMA, TDMA, OFDM/OFDMA, and MIMO for use in 2G, 3G, 4G, and 5G wireless networks, as well as mobile terminal devices; and 3GPP technology portfolio in 5G, 5G, advanced and 6G, as well as technologies for automobiles, wearables, smart homes, drones, and other connected consumer electronic products. In addition, it provides video coding and transmission technologies; and engages in the research and development of artificial intelligence and machine learning solutions. Further, the company's patented technologies are used in various products that include smartphones, tablets, consumer electronics, and base stations; televisions, laptops, gaming consoles, set-top boxes, streaming devices, and connected automobiles. InterDigital, Inc. was incorporated in 1972 and is headquartered in Wilmington, Delaware.