Skillz (NYSE:SKLZ – Get Free Report) and Innodata (NASDAQ:INOD – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, analyst recommendations, earnings, institutional ownership and dividends.
Volatility and Risk
Skillz has a beta of 2.78, indicating that its stock price is 178% more volatile than the S&P 500. Comparatively, Innodata has a beta of 2.31, indicating that its stock price is 131% more volatile than the S&P 500.
Profitability
This table compares Skillz and Innodata’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Skillz | -47.40% | -43.56% | -22.71% |
| Innodata | 2.79% | 11.41% | 4.89% |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Skillz | $118.06 million | 1.00 | -$101.36 million | ($5.11) | -1.07 |
| Innodata | $107.34 million | 5.04 | -$910,000.00 | $0.06 | 313.33 |
Innodata has lower revenue, but higher earnings than Skillz. Skillz is trading at a lower price-to-earnings ratio than Innodata, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
19.4% of Skillz shares are owned by institutional investors. Comparatively, 30.8% of Innodata shares are owned by institutional investors. 22.7% of Skillz shares are owned by insiders. Comparatively, 15.2% of Innodata shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Skillz and Innodata, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Skillz | 0 | 2 | 2 | 0 | 2.50 |
| Innodata | 0 | 0 | 3 | 0 | 3.00 |
Skillz currently has a consensus price target of $10.67, suggesting a potential upside of 94.65%. Innodata has a consensus price target of $27.67, suggesting a potential upside of 47.16%. Given Skillz’s higher probable upside, research analysts clearly believe Skillz is more favorable than Innodata.
Summary
Innodata beats Skillz on 10 of the 14 factors compared between the two stocks.
About Skillz
Skillz Inc. operates a mobile game platform in the United States and internationally. The company primarily develops and supports a proprietary online-hosted technology platform that enables independent game developers to host tournaments and provide competitive gaming activity to end-users. The company distributes games through direct app download from its website, as well as through third-party platforms. Skillz Inc. was founded in 2012 and is based in San Francisco, California.
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.
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