Financial Review: E2open Parent (NYSE:ETWO) and Innodata (NASDAQ:INOD)

Innodata (NASDAQ:INOD) and E2open Parent (NYSE:ETWO) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, analyst recommendations, profitability, dividends, institutional ownership and risk.

Analyst Ratings

This is a summary of current ratings for Innodata and E2open Parent, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innodata	0	0	0	0	N/A
E2open Parent	0	5	0	0	2.00

E2open Parent has a consensus price target of $4.29, indicating a potential downside of 12.98%. Given E2open Parent’s higher probable upside, analysts plainly believe E2open Parent is more favorable than Innodata.

Insider and Institutional Ownership

30.8% of Innodata shares are owned by institutional investors. 18.2% of Innodata shares are owned by company insiders. Comparatively, 5.8% of E2open Parent shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Innodata has a beta of 2.02, meaning that its share price is 102% more volatile than the S&P 500. Comparatively, E2open Parent has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500.

Profitability

This table compares Innodata and E2open Parent’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Innodata	-1.05%	-4.14%	-1.68%
E2open Parent	-168.63%	3.29%	1.85%

Valuation & Earnings

This table compares Innodata and E2open Parent’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innodata	$86.78 million	3.81	-$910,000.00	($0.05)	-230.00
E2open Parent	$634.55 million	2.64	-$1.07 billion	($3.54)	-1.39

Innodata has higher earnings, but lower revenue than E2open Parent. Innodata is trading at a lower price-to-earnings ratio than E2open Parent, indicating that it is currently the more affordable of the two stocks.

Summary

Innodata beats E2open Parent on 7 of the 12 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 E2open Parent

E2open Parent Holdings, Inc. provides cloud-based and end-to-end supply chain management and orchestration SaaS platform in the Americas, Europe, and the Asia Pacific. Its software solutions orchestrate supply chains and realize value and return on investment for its blue-chip customers. The company's software combines networks, data, and applications to provide a platform that allows customers to optimize their channel and supply chain across channel shaping, demand sensing, business planning, global trade management, transportation and logistics, collaborative manufacturing, and supply management. It serves technology, consumer, industrial, transportation, and other industries. The company was incorporated in 2020 and is headquartered in Austin, Texas.