Internap (INAP) & Match Group (MTCH) Critical Analysis

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Internap (NASDAQ: MTCH) and Match Group (NASDAQ:MTCH) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, dividends, risk and institutional ownership.

Valuation and Earnings

This table compares Internap and Match Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Internap $280.72 million 0.99 -$45.34 million ($1.55) -8.43
Match Group $1.33 billion 10.12 $350.14 million $0.52 93.56

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

Risk & Volatility

Internap has a beta of 2.08, indicating that its share price is 108% more volatile than the S&P 500. Comparatively, Match Group has a beta of 0.03, indicating that its share price is 97% less volatile than the S&P 500.

Institutional and Insider Ownership

80.2% of Internap shares are owned by institutional investors. Comparatively, 23.6% of Match Group shares are owned by institutional investors. 5.9% of Internap shares are owned by insiders. Comparatively, 7.0% of Match Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Internap and Match Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Internap -15.52% -2,471.65% -6.99%
Match Group 32.94% 53.18% 13.03%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Internap and Match Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Internap 0 1 1 0 2.50
Match Group 0 8 9 0 2.53

Internap currently has a consensus price target of $20.50, suggesting a potential upside of 56.85%. Match Group has a consensus price target of $42.93, suggesting a potential downside of 11.76%. Given Internap’s higher probable upside, research analysts plainly believe Internap is more favorable than Match Group.

Summary

Match Group beats Internap on 11 of the 14 factors compared between the two stocks.

About Internap

Internap Corporation provides Internet infrastructure services. It operates through two business segments, INAP COLO and INAP CLOUD. The INAP COLO segment offers colocation services, including physical space within data centers and related services, such as power, interconnection, environmental controls, monitoring, and security; and Internet protocol (IP) connectivity services comprising its patented Performance IP and content delivery network services, IP routing hardware and software platforms, and Managed Internet Route Optimizer controllers. This segment offers its colocation services through 56 data centers and 97 POPs worldwide. The INAP CLOUD segment provides hosted Infrastructure-as-a-Service as a cloud platform or through managed hosting that includes the provision and maintenance of hardware, data center infrastructure, and interconnection that enables its customers to own and manage their software applications and content. This segment offers cloud and managed hosting services, which comprise compute and storage services, as well as a single tenant infrastructure environment through an integrated platform that includes servers, storage, and network. The company serves various industries, including healthcare; advertising technology; financial; technology infrastructure; and gaming and software. The company was formerly known as Internap Network Services Corporation and changed its name to Internap Corporation in November 2014. Internap Corporation was founded in 1996 and is headquartered in Atlanta, Georgia.

About Match Group

Match Group, Inc. provides dating products. It operates a portfolio of brands, including Tinder, Match, PlentyOfFish, Meetic, OkCupid, OurTime, and Pairs. Match Group, Inc. offers its dating products through its Websites and applications in 42 languages approximately in 190 countries. The company was incorporated in 2009 and is headquartered in Dallas, Texas. Match Group, Inc. is a subsidiary of IAC/InterActiveCorp.

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