Analyzing Inventergy Global (INVT) & EarthLink (ELNK)

Inventergy Global (OTCMKTS: INVT) and EarthLink (NASDAQ:ELNK) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, earnings, valuation, profitability and dividends.

Dividends

EarthLink pays an annual dividend of $0.20 per share and has a dividend yield of 3.6%. Inventergy Global does not pay a dividend. EarthLink pays out -23.8% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Inventergy Global and EarthLink’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Inventergy Global $1.77 million 0.87 -$7.73 million $1.27 0.06
EarthLink N/A N/A N/A ($0.84) -6.70

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

Institutional & Insider Ownership

88.4% of EarthLink shares are held by institutional investors. 24.6% of Inventergy Global shares are held by company insiders. Comparatively, 1.7% of EarthLink shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Inventergy Global and EarthLink’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Inventergy Global 2,177.99% 37.76% 23.80%
EarthLink -0.01% -14.46% -0.55%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Inventergy Global and EarthLink, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Inventergy Global 0 0 0 0 N/A
EarthLink 0 0 1 0 3.00

EarthLink has a consensus target price of $10.00, indicating a potential upside of 77.62%. Given EarthLink’s higher possible upside, analysts clearly believe EarthLink is more favorable than Inventergy Global.

Summary

Inventergy Global beats EarthLink on 6 of the 11 factors compared between the two stocks.

About Inventergy Global

Inventergy Global, Inc. is an intellectual property (IP) investment and licensing company. The Company offers clients a professional corporate licensing model for IP value creation. The Company’s Technical Lead and associated group works to understand the science and/or technology behind the patents of a particular portfolio, under the review of the Legal Lead and in support of the Business team. This group coordinates the work of third party technology consultants, including technical external resources, such as technical experts, reverse engineering consultancies and other providers, to deliver inputs to the Legal and Business teams. The Legal Lead and Team manage the existing patent asset portfolio from a global perspective and also manage further prosecution of continuing patent cases. The Legal Lead also is responsible for the legal structure and legal documents of any license or negotiated settlement with prospective licensees.

About EarthLink

EarthLink, Inc. (EarthLink), is a network, communications and information technology (IT) services provider to business and residential customers in the United States. The Company operates in two segments: Business Services and Consumer Services. EarthLink’s Business Services segment provides a range of data, voice, managed IT and equipment services to business customers. Its Consumer Services segment provides nationwide Internet access and related value-added services to residential customers. EarthLink operates a network, including approximately 28,800 route miles of fiber, 90 metro fiber rings and four enterprise-class data centers and provides Internet protocol (IP) access services to customers across more than 90% of the United States. In April 2011, EarthLink acquired One Communications Corp. (One Communications). In July 2013, Earthlink Inc completed the acquisition CenterBeam Inc.

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