Agilysys (NASDAQ:AGYS – Get Free Report) and InterDigital (NASDAQ:IDCC – Get Free Report) are both mid-cap technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, earnings, risk, profitability and dividends.
Profitability
This table compares Agilysys and InterDigital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Agilysys | 12.99% | 11.94% | 8.20% |
| InterDigital | 38.32% | 28.17% | 15.00% |
Institutional and Insider Ownership
88.0% of Agilysys shares are owned by institutional investors. Comparatively, 99.8% of InterDigital shares are owned by institutional investors. 8.7% of Agilysys shares are owned by company insiders. Comparatively, 3.5% of InterDigital shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Agilysys | $319.31 million | 9.84 | $38.79 million | $1.51 | 73.75 |
| InterDigital | $834.02 million | 10.46 | $406.64 million | $8.67 | 38.98 |
InterDigital has higher revenue and earnings than Agilysys. InterDigital is trading at a lower price-to-earnings ratio than Agilysys, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Agilysys has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500. Comparatively, InterDigital has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations for Agilysys and InterDigital, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Agilysys | 0 | 3 | 5 | 0 | 2.62 |
| InterDigital | 0 | 1 | 3 | 1 | 3.00 |
Agilysys currently has a consensus price target of $124.60, indicating a potential upside of 11.89%. InterDigital has a consensus price target of $416.67, indicating a potential upside of 23.30%. Given InterDigital’s stronger consensus rating and higher possible upside, analysts plainly believe InterDigital is more favorable than Agilysys.
Summary
InterDigital beats Agilysys on 12 of the 15 factors compared between the two stocks.
About Agilysys
Agilysys, Inc. operates as a developer and marketer of software-enabled solutions and services to the hospitality industry in North America, Europe, the Asia-Pacific, and India. It offers software solutions fully integrated with third party hardware and operating systems; cloud applications, support, and maintenance; subscription and maintenance; and professional services. The company’s hospitality software solutions include hospitality experience cloud offers solution ecosystems that combine core operational systems for property management, point-of-sale (POS), and inventory and procurement; and Hospitality Solution Studios. Its food and beverage ecosystem solutions comprise InfoGenesis POS; IG Kiosk; IG Flex; IG KDS; IG OnDemand; IG Fly; IG Quick Pay; IG Smart Menu; IG Digital Menu Board; IG PanOptic AI-powered self-checkout kiosk; Pay, a payment processing solution; eCash for cashless tender; gift card solution; and Analyze, a cloud-based data analytic platform. The company’s inventory and procurement ecosystem solutions include Eatec solution and Stratton Warren System; LMS, a on-premise or hosted, web and mobile-enabled PMS solution; Versa, a hospitality solution; and Stay, a cloud-native SaaS property management system. Its hospitality and leisure and experience enhancer solutions comprise Book, Express Kiosk and Express Mobile for check-in and check-out; Spa software; Golf; Sales & Catering; Service; Authorize; DataMagine; Reserve solution; Digital Marketing solution; Retail POS solution; Central Reservations; Loyalty & Promotions; Membership; Residence Management; and Guest App. It serves hotels, resorts and cruise lines, casinos, corporate food service management, restaurants, universities, stadiums, and healthcare. The company was formerly known as Pioneer-Standard Electronics, Inc. and changed its name to Agilysys, Inc. in 2003. Agilysys, Inc. was founded in 1932 and is headquartered in Alpharetta, Georgia.
About InterDigital
InterDigital, Inc. operates as a global research and development company with focus primarily on wireless, visual, artificial intelligence (AI), and related technologies. The company engages in the design and development of technologies that enable connected in a range of communications and entertainment products and services, which are licensed to companies providing such products and services, including makers of wireless communications, consumer electronics, IoT devices, and cars and other motor vehicles, as well as providers of cloud-based services, such as video streaming. It designs and develops a range of innovations for use in digital cellular and wireless products and networks, including 2G, 3G, 4G, 5G, and IEEE 802-related products and networks. The company also develops cellular technologies, such as technologies related to CDMA, TDMA, OFDM/OFDMA, and MIMO for use in 2G, 3G, 4G, and 5G wireless networks, as well as mobile terminal devices; and 3GPP technology portfolio in 5G, 5G, advanced and 6G, as well as technologies for automobiles, wearables, smart homes, drones, and other connected consumer electronic products. In addition, it provides video coding and transmission technologies; and engages in the research and development of artificial intelligence and machine learning solutions. Further, the company's patented technologies are used in various products that include smartphones, tablets, consumer electronics, and base stations; televisions, laptops, gaming consoles, set-top boxes, streaming devices, and connected automobiles. InterDigital, Inc. was incorporated in 1972 and is headquartered in Wilmington, Delaware.
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