Xunlei (NASDAQ: XNET) and Internap (NASDAQ:INAP) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, profitability, institutional ownership, dividends, valuation and risk.
Volatility & Risk
Xunlei has a beta of 1.65, indicating that its stock price is 65% more volatile than the S&P 500. Comparatively, Internap has a beta of 2.02, indicating that its stock price is 102% more volatile than the S&P 500.
Insider & Institutional Ownership
19.9% of Xunlei shares are owned by institutional investors. Comparatively, 86.2% of Internap shares are owned by institutional investors. 3.7% of Internap shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Xunlei and Internap’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Xunlei||$200.58 million||3.30||-$37.82 million||N/A||N/A|
|Internap||$280.72 million||0.78||-$45.34 million||($1.55)||-7.07|
Xunlei has higher earnings, but lower revenue than Internap.
This is a breakdown of recent ratings for Xunlei and Internap, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Internap has a consensus price target of $28.00, suggesting a potential upside of 155.47%. Given Internap’s higher possible upside, analysts plainly believe Internap is more favorable than Xunlei.
This table compares Xunlei and Internap’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Internap beats Xunlei on 9 of the 12 factors compared between the two stocks.
Xunlei Limited (Xunlei) is a cloud-based acceleration technology company. The Company operates an Internet platform in China based on cloud computing to enable users to access, manage and consume digital media content. The Company’s segment is the operation of its online media platform. The Company’s products and services include Xunlei Accelerator, which enables users to accelerate digital transmission over the Internet, and cloud acceleration subscription services, which offer user services for speed and reliability. The Company’s Xunlei Accelerator allows users to accelerate digital transmission over the Internet. Xunlei Accelerator also bridges users with diverse needs to other services it offers, such as Xunlei Media Player, which supports both online and offline video watching, and its various online games, including Web games and massively multiplayer online games (MMOGs), by recommending and providing links to these services on its user interface.
Internap Corporation is a technology provider of Internet infrastructure. The Company provides Internet infrastructure through both Colocation Business and Enterprise Services and Cloud Services. The Company operates through two segments: Data Center and Network Services, and Cloud and Hosting Services. Its Data Center and Network Services segment consists of colocation and Internet Protocol (IP) connectivity services. Colocation involves providing physical space within data centers and associated services, such as power, interconnection, environmental controls, monitoring and security while allowing its customers to deploy and manage their servers, storage and other equipment in its secure data centers. Its cloud and hosting services segment consists of hosted Infrastructure-as-a-Service as a cloud platform or through managed hosting. For both Infrastructure-as-a-Service options, the Company provides and maintains the hardware, data center infrastructure and interconnection.
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