Analyzing Joint (JYNT) & InterDigital (IDCC)

Joint (NASDAQ: JYNT) and InterDigital (NASDAQ:IDCC) are both medical companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, dividends, valuation and earnings.

Earnings & Valuation

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This table compares Joint and InterDigital’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Joint $25.16 million 3.76 -$3.27 million ($0.25) -27.82
InterDigital $532.94 million 5.13 $174.29 million $6.06 13.04

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

Dividends

InterDigital pays an annual dividend of $1.40 per share and has a dividend yield of 1.8%. Joint does not pay a dividend. InterDigital pays out 23.1% of its earnings in the form of a dividend.

Profitability

This table compares Joint and InterDigital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Joint -13.01% -66.74% -20.11%
InterDigital 32.70% 26.52% 11.58%

Volatility and Risk

Joint has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, InterDigital has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for Joint and InterDigital, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Joint 0 0 4 0 3.00
InterDigital 0 1 3 0 2.75

Joint presently has a consensus target price of $6.82, suggesting a potential downside of 1.99%. InterDigital has a consensus target price of $90.50, suggesting a potential upside of 14.56%. Given InterDigital’s higher possible upside, analysts plainly believe InterDigital is more favorable than Joint.

Insider & Institutional Ownership

49.6% of Joint shares are owned by institutional investors. Comparatively, 74.2% of InterDigital shares are owned by institutional investors. 6.1% of Joint shares are owned by company insiders. Comparatively, 1.9% of InterDigital 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.

Summary

InterDigital beats Joint on 10 of the 15 factors compared between the two stocks.

About Joint

The Joint Corp. develops, owns, operates, supports and manages chiropractic clinics through direct ownership, management arrangements, franchising and the sale of regional developer rights throughout the United States. The Company is franchisor and operator of chiropractic clinics. The Company offers its patients the opportunity to visit its clinics without an appointment and receive prompt attention. The Company has approximately 310 franchised, company-owned, or managed clinics in operation in over 30 states. In addition to its approximately 310 operating clinics, the Company has granted franchises either directly or through its regional developers for an additional over 170 clinics. The Company offers a range of membership and wellness packages. Each patient’s records are digitally updated for ready retrieval in its data storage system by its chiropractors in compliance with various applicable medical records security and privacy regulations.

About InterDigital

InterDigital, Inc. designs and develops technologies that enable and enhance wireless communications in the United States and internationally. It offers technology solutions for use in digital cellular and wireless products and networks, including 2G, 3G, 4G, and IEEE 802-related products and networks. The company develops cellular technologies, such as technologies related to CDMA, TDMA, OFDM/OFDMA, and MIMO for use in 2G, 3G, and 4G wireless networks and mobile terminal devices; and other wireless technologies related to Wi-Fi, WLAN, WMAN, and WRAN. It also provides interoperability and scalability solutions through oneMPOWER platform; and common interface to multiple service providers. The company's patented technologies are used in various products, including mobile devices comprising cellular phones, tablets, notebook computers, and wireless personal digital assistants; wireless infrastructure equipment consisting of base stations; components, dongles, and modules for wireless devices; and Internet of Things devices and software platforms. As of December 31, 2017, it had a portfolio of approximately 19,000 patents and patent applications related to the fundamental technologies that enable wireless communications. InterDigital, Inc. was founded in 1972 and is headquartered in Wilmington, Delaware.

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