Iron Mountain (NYSE: IRM) and Tangoe (NASDAQ:TNGO) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.
Valuation and Earnings
This table compares Iron Mountain and Tangoe’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Iron Mountain||$3.77 billion||2.59||$1.21 billion||$0.74||49.85|
Iron Mountain has higher revenue and earnings than Tangoe.
Iron Mountain pays an annual dividend of $2.20 per share and has a dividend yield of 6.0%. Tangoe does not pay a dividend. Iron Mountain pays out 297.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Tangoe has increased its dividend for 7 consecutive years.
This table compares Iron Mountain and Tangoe’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
Iron Mountain has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500. Comparatively, Tangoe has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500.
Insider & Institutional Ownership
86.0% of Iron Mountain shares are owned by institutional investors. Comparatively, 59.2% of Tangoe shares are owned by institutional investors. 1.5% of Iron Mountain shares are owned by company insiders. Comparatively, 12.0% of Tangoe shares are owned by company 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.
This is a breakdown of current ratings for Iron Mountain and Tangoe, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Iron Mountain currently has a consensus price target of $35.00, suggesting a potential downside of 5.12%. Tangoe has a consensus price target of $6.50, suggesting a potential upside of 2.36%. Given Tangoe’s higher probable upside, analysts clearly believe Tangoe is more favorable than Iron Mountain.
Iron Mountain beats Tangoe on 7 of the 12 factors compared between the two stocks.
About Iron Mountain
Iron Mountain Incorporated (Iron Mountain) is engaged in storing records, primarily paper documents and data backup media, and provide information management services. The Company offers records management services, data protection and recovery services and information destruction services. Its information management services are divided into three categories: records management services, data protection and recovery services, and information destruction services. The Company’s records management services include flexible retrieval access, retention management and records management program development and implementation based on practices to help customers comply with specific regulatory requirements and policy-based programs. It provides data protection and recovery services for both physical and electronic records. The Company’s information destruction services consist primarily of physical secure shredding operations.
Tangoe, Inc. is a provider of information technology (IT) and Telecom Expense Management (TEM) software and related services. The Company offers its services to a range of global enterprises and service providers. Its products and solutions include mobility, telecom, cloud, IT expense, strategic consulting and mobility as a service (MaaS). Its mobility solution includes expense management; procurement, logistics and activation; usage management; enterprise mobility; mobile support, and financial management. Its IT expense solution includes expense management, inventory and asset management, usage management and financial management. Its enterprise mobility and IT consulting services include strategic sourcing; strategy assessment, planning, and policy development, and implementation and transition support. The Company offers contract sourcing, strategy and policy consulting, service maturity assessment, global services benchmarking and lifecycle advisory, among others.
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