Critical Survey: Indra Sistemas (OTCMKTS:ISMAY) vs. Wi-LAN (OTCMKTS:QTRHF)

Wi-LAN (OTCMKTS:QTRHF) and Indra Sistemas (OTCMKTS:ISMAY) are both business services companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, analyst recommendations, earnings, valuation, dividends and institutional ownership.

Analyst Recommendations

This is a summary of current ratings and target prices for Wi-LAN and Indra Sistemas, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wi-LAN	0	0	1	0	3.00
Indra Sistemas	0	2	0	3	3.20

Valuation & Earnings

This table compares Wi-LAN and Indra Sistemas”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wi-LAN	$153.30 million	0.51	-$11.02 million	($0.17)	-3.96
Indra Sistemas	$5.24 billion	N/A	$300.33 million	$1.22	27.97

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

Profitability

This table compares Wi-LAN and Indra Sistemas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wi-LAN	-12.64%	-16.03%	-8.71%
Indra Sistemas	7.66%	27.69%	6.94%

Volatility & Risk

Wi-LAN has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, Indra Sistemas has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500.

Summary

Indra Sistemas beats Wi-LAN on 9 of the 11 factors compared between the two stocks.

About Wi-LAN

Quarterhill Inc., together with its subsidiaries, operates in intelligent transportation system business in Canada and internationally. The company offers riteSuite, which offers mobility solutions, such as all-electronic tolling, dynamic pricing, agency interoperability, hosted mobility solutions, and machine learning; back-office solutions, which offers account management, customer service, violation processing, and technical services operations; roadside solutions, which offers onsite and remote maintenance and field operations services, including tolling facility support, lane equipment control, and cash management services; and international road dynamics products and services, which offers automated truck weigh stations, toll road systems and equipment, red light and speed enforcement systems, and traffic management and safety systems. It also provides VectorSense, a tire sensor suite; Vehicle Information-In-Motion traffic intelligence system, an integrated traffic control system; permanent Weigh-InMotion systems; portable slow speed Weigh-In-Motion systems; portable wheel load scales; traffic data collection products, vehicle and axle detection equipment, and automated vehicle identification services and equipment; and other hardware and software products and offerings. The company was formerly known as Wi-LAN Inc. and changed its name to Quarterhill Inc. in June 2017. Quarterhill Inc. was incorporated in 1992 and is headquartered in Toronto, Canada.

About Indra Sistemas

Indra Sistemas, S.A. operates as a technology and consulting company for aerospace, defense, and mobility business worldwide. The company operates through four segments: Defence, Air Traffic, Mobility, and Minsait. It offers Mova Consulting for planing and designing transport infrastructures; Mova Collect for ticketing, tolling, and back office applications; Mova Traffic for building traffic management and control solutions; Mova Protect for protection of businesses and people; Mova Experience; Mova Comms for connecting the transportation ecosystem with personalized communication solutions; Mova Care that provides infrastructure operation and maintenance, technology operation and maintenance, and transportation services operation and maintenance; and In-Mova Space, a technological mobility and infrastructure management platform. The company also provides Indra Air Automation; Indra Air Communication; Indra Air Navigation; Indra Air Surveillance; Indra Air Drones; Indra Air Information; and Indra Air Services for air traffic applications. In addition, the company offers defence and security solutions, including Platforms, defence systems, security, cyberdefence, space technologies applied to military operations, military and civilian training solutions, and logistics and maintenance services; and other technological solutions for public administration, industry and consumption, financial services, energy, and telco and media sectors. Indra Sistemas, S.A. was founded in 1921 and is based in Alcobendas, Spain.