Financial Contrast: Lionbridge Technologies (LIOX) vs. WageWorks (WAGE)

Lionbridge Technologies (NASDAQ: LIOX) and WageWorks (NYSE:WAGE) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, risk, dividends, valuation and earnings.

Profitability

This table compares Lionbridge Technologies and WageWorks’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lionbridge Technologies 1.97% 12.05% 3.60%
WageWorks 9.87% 9.60% 3.37%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Lionbridge Technologies and WageWorks, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lionbridge Technologies 0 1 0 0 2.00
WageWorks 0 1 4 0 2.80

Lionbridge Technologies currently has a consensus target price of $5.75, indicating a potential upside of 0.00%. WageWorks has a consensus target price of $83.00, indicating a potential upside of 34.30%. Given WageWorks’ stronger consensus rating and higher probable upside, analysts plainly believe WageWorks is more favorable than Lionbridge Technologies.

Institutional & Insider Ownership

63.3% of Lionbridge Technologies shares are owned by institutional investors. 11.4% of Lionbridge Technologies shares are owned by insiders. Comparatively, 3.5% of WageWorks shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Lionbridge Technologies and WageWorks’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lionbridge Technologies N/A N/A N/A $0.16 35.94
WageWorks $364.71 million 6.72 $20.20 million $1.17 52.82

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

Summary

WageWorks beats Lionbridge Technologies on 7 of the 11 factors compared between the two stocks.

Lionbridge Technologies Company Profile

Lionbridge Technologies, Inc. is a United States-based company, which provides translation, online marketing, global content management and application testing solutions. The Company enables more than 800 brands to manage international market share and engage their customers in local markets across the world. It offers various solutions, such as Language Translation Services, Global Marketing Services, Website Translation and Localization, Engineering, Technical Publications and Training, Testing Services and Translation Technology. Its portfolio of language translation services includes Website Translation, Software Localization, Real-Time Translation for Chat and Forums, and Interpreter Services. Its Data Management Services allow companies to manage unprocessed data from multiple languages. Its Crowd translation of user-generated content (blogs, messages, surveys, reviews) allows clients to repurpose pieces of consumer advocacy for a new target language.

WageWorks Company Profile

WageWorks, Inc. is engaged in administering Consumer-Directed Benefits (CDBs). The Company administers CBDs, including pre-tax spending accounts, such as Health Savings Accounts (HSAs), health and dependent care Flexible Spending Accounts (FSAs), and Health Reimbursement Arrangements (HRAs), as well as Commuter Benefit Services, including transit and parking programs, wellness programs, Consolidated Omnibus Budget Reconciliation Act (COBRA) and other employee benefits. Its CDB programs assist employees and their families in saving money by using pre-tax dollars to pay for certain of their healthcare, dependent care and commuter expenses. Employers financially benefit from its programs through reduced payroll taxes. It provides operational support services to its clients and its cross-functional teams, including customer support and claims processing. It administers HSAs for employers that allow employee participants to invest funds to be used for qualified healthcare expenses.

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