Analyzing Infoblox (BLOX) & Inovalon Holdings (INOV)

Infoblox (NYSE: BLOX) and Inovalon Holdings (NASDAQ:INOV) are both technology companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, profitability, dividends, institutional ownership, valuation, analyst recommendations and earnings.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Infoblox and Inovalon Holdings, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Infoblox 0 0 0 0 N/A
Inovalon Holdings 1 6 1 0 2.00

Inovalon Holdings has a consensus target price of $14.00, suggesting a potential downside of 17.65%. Given Inovalon Holdings’ higher probable upside, analysts clearly believe Inovalon Holdings is more favorable than Infoblox.

Valuation and Earnings

This table compares Infoblox and Inovalon Holdings’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Infoblox N/A N/A N/A ($0.25) -105.80
Inovalon Holdings $419.99 million 5.90 $67.35 million $0.11 154.56

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

Volatility & Risk

Infoblox has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500. Comparatively, Inovalon Holdings has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500.

Profitability

This table compares Infoblox and Inovalon Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Infoblox -11.94% -17.84% -9.05%
Inovalon Holdings 4.13% 5.17% 3.38%

Insider and Institutional Ownership

93.9% of Infoblox shares are owned by institutional investors. Comparatively, 28.7% of Inovalon Holdings shares are owned by institutional investors. 3.2% of Infoblox shares are owned by company insiders. Comparatively, 48.3% of Inovalon Holdings shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Inovalon Holdings beats Infoblox on 9 of the 10 factors compared between the two stocks.

Infoblox Company Profile

Infoblox Inc. (Infoblox) is a United States-based company, which delivers Actionable Network Intelligence to enterprise, government and service provider customers across the world. The Company’s products include core network services, such as domain name system (DNS), dynamic host configuration protocol (DHCP), Internet protocol address manager (IPAM) data documentation initiative (DDI); Private Cloud/Virtualization; Public/Hybrid Cloud; Reporting and Analytics, and Network Insight. Its products also include DNS, such as DNS Firewall, Advanced DNS Protection, Threat Insight and Active Trust, and network automation, such as NetMRI. Its solutions include information technology (IT) compliance and digital economy. It offers solutions for Microsoft and Infoblox, Internet protocol version 6 (IPv6) readiness and cybersecurity ecosystem. It supports offerings, such as Infoblox BloxCare Premium and Elite Maintenance programs, as well as its optional Technical Account Manager service.

Inovalon Holdings Company Profile

Inovalon Holdings, Inc. (Inovalon) is a technology company. The Company provides cloud-based platforms empowering a data-driven transformation from volume-based to value-based models to the healthcare industry. Leveraging large-scale data interconnectivity capabilities, unparalleled proprietary data sets, advanced analytics, data-driven intervention systems, and subject matter expertise, Inovalon enables the assessment and improvement of clinical and quality outcomes and financial performance across the healthcare ecosystem. The Company serves clients across the healthcare industry, which includes health plans and provider organizations, pharmaceutical, medical device, and diagnostics companies. It provides technology that supports approximately 500 healthcare organizations. Inovalon’s platforms are informed by data pertaining to more than 856,000 physicians, 375,000 clinical facilities, and more than 158 million Americans.

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