Analyzing iPass (IPAS) and Carbonite (CARB)

iPass (NASDAQ: IPAS) and Carbonite (NASDAQ:CARB) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, profitability, institutional ownership and analyst recommendations.

Insider & Institutional Ownership

17.3% of iPass shares are owned by institutional investors. Comparatively, 96.2% of Carbonite shares are owned by institutional investors. 8.2% of iPass shares are owned by insiders. Comparatively, 9.8% of Carbonite shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares iPass and Carbonite’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
iPass -39.29% -659.67% -103.58%
Carbonite 0.14% 35.49% 4.55%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for iPass and Carbonite, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
iPass 0 0 3 0 3.00
Carbonite 0 1 6 0 2.86

iPass presently has a consensus price target of $1.80, suggesting a potential upside of 429.41%. Carbonite has a consensus price target of $32.86, suggesting a potential downside of 7.44%. Given iPass’ stronger consensus rating and higher probable upside, research analysts plainly believe iPass is more favorable than Carbonite.

Earnings and Valuation

This table compares iPass and Carbonite’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
iPass $54.40 million 0.45 -$20.55 million ($0.31) -1.10
Carbonite $239.46 million 4.25 -$4.00 million $0.50 71.00

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

Volatility & Risk

iPass has a beta of 0.2, indicating that its share price is 80% less volatile than the S&P 500. Comparatively, Carbonite has a beta of 0.24, indicating that its share price is 76% less volatile than the S&P 500.

Summary

Carbonite beats iPass on 12 of the 14 factors compared between the two stocks.

About iPass

iPass Inc. provides mobile connectivity that enables Wi-Fi access on various mobile devices in the United States and internationally. It offers mobile connectivity services that provide cloud-based solution allowing customers and their users access to its Wi-Fi network to stay connected to the people and information. The company provides business to business mobile connectivity solutions to large and small enterprises, as well as to strategic partnerships comprising original equipment manufacturers, loyalty programs, software product and service providers, and communication companies; and iPass SmartConnect that takes the guesswork out of Wi-Fi automatically connecting customers to the hotspot for their needs. It operates hotspots at airports, hotels, train stations, convention centers, outdoor venues, inflight, and others. The company sells its services directly through its global sales force, as well as through reseller and strategic partners. iPass Inc. was founded in 1996 and is headquartered in Redwood Shores, California.

About Carbonite

Carbonite, Inc., together with its subsidiaries, provides backup, disaster recovery, high availability, and workload migration technology solutions in the United States. Its solutions include Carbonite Safe that offers annual and multi-year cloud backup plans for individuals or businesses; and Carbonite Endpoint Protection that protects the data, which resides on an organization's computers, laptops, tablets, and smartphones. The company's solutions also comprise Carbonite Hybrid Backup, which protects a customer's data footprint on-premise and in the cloud and enables recovery while version history stored in the cloud safeguards against disaster; Carbonite Cloud Backup that automatically backs up data to the cloud and keeps physical and virtual systems protected with point-in-time restore; and Carbonite Onsite Backup, a flexible data protection solution, which backs up and replicates data securely across a customer's own private network. In addition, it offers Carbonite Availability that keeps critical business systems available on Windows and Linux servers; Carbonite Recover, a disaster recovery-as-a-service solution that securely replicates critical systems from a customer's primary environment to the cloud; Carbonite Migrate, which migrates physical, virtual, and cloud workloads to and from any environment with minimal risk and near-zero downtime; and Carbonite Email Archiving that provides MailStore offerings designed to meet the specific email archiving needs of customers in terms of performance, stability, functionality, and simplicity. The company provides its solutions through distributors, value-added resellers, managed service providers, and global systems integrators. Carbonite, Inc. was founded in 2005 and is headquartered in Boston, Massachusetts.

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