Financial Contrast: Intellinetics (OTCMKTS:INLX) versus Strategy (NASDAQ:MSTR)

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

Risk and Volatility

Strategy has a beta of 3.87, meaning that its share price is 287% more volatile than the S&P 500. Comparatively, Intellinetics has a beta of 0.18, meaning that its share price is 82% less volatile than the S&P 500.

Institutional & Insider Ownership

59.8% of Strategy shares are held by institutional investors. Comparatively, 0.8% of Intellinetics shares are held by institutional investors. 8.5% of Strategy shares are held by insiders. Comparatively, 31.6% of Intellinetics shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Strategy and Intellinetics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Strategy	0	4	13	1	2.83
Intellinetics	0	1	0	0	2.00

Strategy currently has a consensus price target of $485.80, suggesting a potential upside of 171.34%. Given Strategy’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Strategy is more favorable than Intellinetics.

Valuation and Earnings

This table compares Strategy and Intellinetics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Strategy	$474.94 million	108.32	-$1.17 billion	$21.50	8.33
Intellinetics	$16.54 million	2.35	$20,000.00	($0.39)	-22.26

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Strategy	1,036.61%	18.83%	13.40%
Intellinetics	4.09%	7.71%	3.42%

Summary

Strategy beats Intellinetics on 12 of the 15 factors compared between the two stocks.

About Strategy

Strategy Incorporated, formerly known as MicroStrategy, provides artificial intelligence-powered enterprise analytics software and services in the United States, Europe, the Middle East, Africa, and internationally. It offers Strategy ONE, a platform that allows non-technical users to access novel and actionable insights for decision-making, and Strategy Cloud for Government, which provides always-on threat monitoring designed to meet the strict technical and regulatory standards of governments and financial institutions. The company also delivers Strategy Support, helping customers achieve system availability and usage goals through responsive troubleshooting; Strategy Consulting, offering architecture and implementation services; and Strategy Education, which includes free and paid learning options. In addition, the company is actively involved in Bitcoin development. The company offers its services through direct sales force and channel partners. It serves the U.S. government, state and local governments, and government agencies, as well as a range of industries, including retail, banking, technology, manufacturing, insurance, consulting, healthcare, telecommunications, and the public sector. The company was incorporated in 1989 and is headquartered in Tysons Corner, Virginia.

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, audio, videos, and emails. The company's flagship software suite includes IntelliCloud platform that comprises image processing modules, accounts payable lifecycle automation, records management, workflow, and extended components; and YellowFolder, a specialized content management software solution for the K-12 education market. 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 State, 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. was founded in 1996 and is headquartered in Columbus, Ohio.