Lionbridge Technologies (NASDAQ: LIOX) and Ituran Location and Control (NASDAQ:ITRN) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, dividends, valuation, profitability, institutional ownership, risk and analyst recommendations.
This table compares Lionbridge Technologies and Ituran Location and Control’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ituran Location and Control||18.67%||36.12%||22.00%|
Earnings and Valuation
This table compares Lionbridge Technologies and Ituran Location and Control’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Ituran Location and Control||$218.77 million||3.58||$65.10 million||$1.95||19.13|
Ituran Location and Control has higher revenue and earnings than Lionbridge Technologies. Ituran Location and Control is trading at a lower price-to-earnings ratio than Lionbridge Technologies, indicating that it is currently the more affordable of the two stocks.
Ituran Location and Control pays an annual dividend of $0.96 per share and has a dividend yield of 2.6%. Lionbridge Technologies does not pay a dividend. Ituran Location and Control pays out 49.2% of its earnings in the form of a dividend.
This is a breakdown of current ratings and target prices for Lionbridge Technologies and Ituran Location and Control, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ituran Location and Control||0||0||1||0||3.00|
Lionbridge Technologies currently has a consensus target price of $6.38, indicating a potential upside of 10.87%. Ituran Location and Control has a consensus target price of $31.00, indicating a potential downside of 16.89%. Given Lionbridge Technologies’ higher probable upside, research analysts plainly believe Lionbridge Technologies is more favorable than Ituran Location and Control.
Institutional & Insider Ownership
63.3% of Lionbridge Technologies shares are owned by institutional investors. Comparatively, 51.8% of Ituran Location and Control shares are owned by institutional investors. 11.4% of Lionbridge Technologies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Risk & Volatility
Lionbridge Technologies has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500. Comparatively, Ituran Location and Control has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500.
Ituran Location and Control beats Lionbridge Technologies on 7 of the 12 factors compared between the two stocks.
About Lionbridge Technologies
Lionbridge Technologies, Inc. is a United States-based company, which provides translation, online marketing, global content management and application testing solutions. The Company enables more than 800 brands to manage international market share and engage their customers in local markets across the world. It offers various solutions, such as Language Translation Services, Global Marketing Services, Website Translation and Localization, Engineering, Technical Publications and Training, Testing Services and Translation Technology. Its portfolio of language translation services includes Website Translation, Software Localization, Real-Time Translation for Chat and Forums, and Interpreter Services. Its Data Management Services allow companies to manage unprocessed data from multiple languages. Its Crowd translation of user-generated content (blogs, messages, surveys, reviews) allows clients to repurpose pieces of consumer advocacy for a new target language.
About Ituran Location and Control
Ituran Location and Control Ltd. is a provider of location-based services, consisting of stolen vehicle recovery (SVR), fleet management services and other tracking services. The Company also provides wireless communication products used in connection with its location-based services and various other applications. Its operations consist of two segments: location-based services and wireless communications products. Its location-based services segment consists of its SVR and tracking services, fleet management and value-added services consisted of personal locater services and concierge services. Its wireless communications products segment consists of short and medium range two-way machine-to-machine wireless communications products that are used for various applications, including automatic vehicle location (AVL) and automatic vehicle identification. It primarily provides its services, as well as sells and leases its products in Israel, Brazil, Argentina and the United States.
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