Contrasting Skillsoft (NYSE:SKIL) and Innodata (NASDAQ:INOD)

Innodata (NASDAQ:INOD) and Skillsoft (NYSE:SKIL) are both small-cap industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, profitability, dividends, earnings, valuation and institutional ownership.

Institutional & Insider Ownership

30.7% of Innodata shares are held by institutional investors. Comparatively, 87.0% of Skillsoft shares are held by institutional investors. 11.8% of Innodata shares are held by insiders. Comparatively, 16.2% of Skillsoft shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Innodata and Skillsoft”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innodata	$251.66 million	7.55	$32.18 million	$1.32	41.85
Skillsoft	$512.67 million	0.09	-$139.82 million	($18.53)	-0.26

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

Analyst Ratings

This is a summary of recent ratings and target prices for Innodata and Skillsoft, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innodata	0	2	1	1	2.75
Skillsoft	1	2	0	0	1.67

Innodata presently has a consensus target price of $130.00, indicating a potential upside of 135.34%. Given Innodata’s stronger consensus rating and higher possible upside, equities analysts plainly believe Innodata is more favorable than Skillsoft.

Profitability

This table compares Innodata and Skillsoft’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%
Skillsoft	-36.13%	-74.19%	4.10%

Risk & Volatility

Innodata has a beta of 2.88, indicating that its share price is 188% more volatile than the S&P 500. Comparatively, Skillsoft has a beta of 2.22, indicating that its share price is 122% more volatile than the S&P 500.

Summary

Innodata beats Skillsoft on 12 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 Skillsoft

Skillsoft Corp. provides content and platform and instructor-led training services in the United States and internationally. The company's Content & Platform segment engages in the sale, marketing, and delivery of its content learning solutions in areas, such as leadership and business, technology and developer, and compliance comprising individualized coaching, as well as technical skill areas. This segment also offers Percipio, an AI-driven online learning platform that delivers a learning experience through SaaS solutions. Its Instructor-Led Training segment provides training solutions, including information technology and business skills for corporations and their employees by guiding its customers throughout their lifelong technology learning journey by offering relevant and up-to-date skills training through instructor-led and self-paced, vendor certified, and other proprietary offerings. The company markets and sells their offerings to businesses of many sizes, government agencies, educational institutions, and resellers. Skillsoft Corp. is headquartered in Greenwood Village, Colorado.