Comparing VMware (VMW) & Intralinks (NYSE:IL)

Intralinks (NYSE: IL) and VMware (NYSE:VMW) are both technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, risk, earnings, valuation and analyst recommendations.

Profitability

This table compares Intralinks and VMware’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Intralinks -1.63% -1.87% -1.13%
VMware 18.97% 18.57% 8.81%

Valuation & Earnings

This table compares Intralinks and VMware’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Intralinks N/A N/A N/A ($0.35) -37.17
VMware $7.09 billion 7.53 $1.19 billion $3.50 37.87

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

Analyst Recommendations

This is a summary of recent recommendations for Intralinks and VMware, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Intralinks 0 1 0 0 2.00
VMware 0 9 20 0 2.69

Intralinks presently has a consensus price target of $13.00, indicating a potential downside of 0.08%. VMware has a consensus price target of $124.83, indicating a potential downside of 5.81%. Given Intralinks’ higher probable upside, equities research analysts plainly believe Intralinks is more favorable than VMware.

Institutional & Insider Ownership

91.2% of Intralinks shares are held by institutional investors. Comparatively, 22.5% of VMware shares are held by institutional investors. 32.3% of Intralinks shares are held by insiders. Comparatively, 34.4% of VMware shares are held by 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.

Summary

VMware beats Intralinks on 9 of the 11 factors compared between the two stocks.

Intralinks Company Profile

Intralinks Holdings, Inc. is a technology provider of software-as-a-service (SaaS) solutions for secure enterprise content collaboration within and among organizations. The Company’s cloud-based solutions enable organizations to manage, control, track, search, exchange and collaborate on sensitive information inside and outside the firewall. Its solutions enables its customers to manage electronic information, accelerate information-intensive business processes, optimize critical information workflows, meet regulatory and risk management requirements, and collaborate with business counterparties. The Company delivers its solutions through a cloud-based model, making them available on-demand over the Internet using a multi-tenant SaaS architecture. The Company serves enterprises and governmental agencies across a range of industries, including financial services, pharmaceutical, manufacturing, biotechnology, consumer, energy, legal, professional services, insurance and technology.

VMware Company Profile

VMware, Inc. is an information technology (IT) company. The Company is engaged in development and application of virtualization technologies with x86 server-based computing, separating application software from the underlying hardware. The Company offers various products, which allow organizations to manage IT resources across private clouds and multi-cloud, multi-device environments by leveraging synergies across three product categories: Software-Defined Data Center (SDDC), Hybrid Cloud Computing and End-User Computing (EUC). The SDDC is designed to transform and modernize the data center into an on-demand service that addresses application requirements by abstracting, pooling and automating the services that are required from the underlying hardware. The Company provides many storage and availability products to offer data storage and protection options to all applications running on the vSphere platform.

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