InterDigital (NASDAQ:IDCC) & Agilysys (NASDAQ:AGYS) Head-To-Head Survey

Agilysys (NASDAQ:AGYS) and InterDigital (NASDAQ:IDCC) are both mid-cap technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, dividends, earnings, profitability and institutional ownership.

Risk and Volatility

Agilysys has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500. Comparatively, InterDigital has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500.

Insider & Institutional Ownership

88.0% of Agilysys shares are held by institutional investors. Comparatively, 99.8% of InterDigital shares are held by institutional investors. 8.7% of Agilysys shares are held by insiders. Comparatively, 3.5% of InterDigital shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Agilysys	12.99%	11.94%	8.20%
InterDigital	38.32%	28.17%	15.00%

Earnings & Valuation

This table compares Agilysys and InterDigital”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Agilysys	$319.31 million	10.03	$38.79 million	$1.51	75.17
InterDigital	$834.02 million	10.21	$406.64 million	$8.67	38.04

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

Analyst Ratings

This is a summary of current ratings and target prices for Agilysys and InterDigital, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Agilysys	0	3	5	0	2.62
InterDigital	0	1	3	1	3.00

Agilysys currently has a consensus price target of $124.60, indicating a potential upside of 9.77%. InterDigital has a consensus price target of $416.67, indicating a potential upside of 26.34%. Given InterDigital’s stronger consensus rating and higher probable upside, analysts plainly believe InterDigital is more favorable than Agilysys.

Summary

InterDigital beats Agilysys on 12 of the 15 factors compared between the two stocks.

About Agilysys

Agilysys, Inc. operates as a developer and marketer of software-enabled solutions and services to the hospitality industry in North America, Europe, the Asia-Pacific, and India. It offers software solutions fully integrated with third party hardware and operating systems; cloud applications, support, and maintenance; subscription and maintenance; and professional services. The company’s hospitality software solutions include hospitality experience cloud offers solution ecosystems that combine core operational systems for property management, point-of-sale (POS), and inventory and procurement; and Hospitality Solution Studios. Its food and beverage ecosystem solutions comprise InfoGenesis POS; IG Kiosk; IG Flex; IG KDS; IG OnDemand; IG Fly; IG Quick Pay; IG Smart Menu; IG Digital Menu Board; IG PanOptic AI-powered self-checkout kiosk; Pay, a payment processing solution; eCash for cashless tender; gift card solution; and Analyze, a cloud-based data analytic platform. The company’s inventory and procurement ecosystem solutions include Eatec solution and Stratton Warren System; LMS, a on-premise or hosted, web and mobile-enabled PMS solution; Versa, a hospitality solution; and Stay, a cloud-native SaaS property management system. Its hospitality and leisure and experience enhancer solutions comprise Book, Express Kiosk and Express Mobile for check-in and check-out; Spa software; Golf; Sales & Catering; Service; Authorize; DataMagine; Reserve solution; Digital Marketing solution; Retail POS solution; Central Reservations; Loyalty & Promotions; Membership; Residence Management; and Guest App. It serves hotels, resorts and cruise lines, casinos, corporate food service management, restaurants, universities, stadiums, and healthcare. The company was formerly known as Pioneer-Standard Electronics, Inc. and changed its name to Agilysys, Inc. in 2003. Agilysys, Inc. was founded in 1932 and is headquartered in Alpharetta, Georgia.

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.