Critical Analysis: Imprivata (IMPR) & Intuit (INTU)

Imprivata (NYSE: IMPR) and Intuit (NASDAQ:INTU) are both technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Dividends

Intuit pays an annual dividend of $1.36 per share and has a dividend yield of 1.0%. Imprivata does not pay a dividend. Intuit pays out 36.6% of its earnings in the form of a dividend.

Profitability

This table compares Imprivata and Intuit’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Imprivata -17.22% -58.85% -22.17%
Intuit 18.76% 82.43% 22.68%

Institutional & Insider Ownership

59.3% of Imprivata shares are owned by institutional investors. Comparatively, 86.0% of Intuit shares are owned by institutional investors. 40.2% of Imprivata shares are owned by insiders. Comparatively, 5.7% of Intuit shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations for Imprivata and Intuit, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Imprivata 0 0 0 0 N/A
Intuit 1 7 12 0 2.55

Intuit has a consensus target price of $143.12, suggesting a potential upside of 0.18%. Given Intuit’s higher possible upside, analysts plainly believe Intuit is more favorable than Imprivata.

Volatility and Risk

Imprivata has a beta of -1.21, meaning that its stock price is 221% less volatile than the S&P 500. Comparatively, Intuit has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500.

Valuation and Earnings

This table compares Imprivata and Intuit’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Imprivata N/A N/A N/A ($0.93) -20.71
Intuit $5.18 billion 7.03 $1.63 billion $3.72 38.40

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

Summary

Intuit beats Imprivata on 10 of the 12 factors compared between the two stocks.

Imprivata Company Profile

Imprivata, Inc. (Imprivata) is a United States-based healthcare information technology security company. The Company enables healthcare organizations to access, communicate and transact patient information securely. The Company offers Imprivata OneSign, Imprivata Cortext, Imprivata Confirm ID and Imprivata PatientSecure. Imprivata OneSign provides single sign-on, authentication management and virtual desktop roaming, enabling No Click Access to clinical applications and patient information, anytime, anywhere and from any device. Imprivata Cortext enables clinicians to collaborate across care teams and organizations. Imprivata Confirm ID is an identity and two-factor authentication platform for remote access, electronic prescriptions for controlled substances (EPCS), medical device access and other clinical authentication workflows. Imprivata PatientSecure is a patient identification solution that uses palm vein recognition biometrics to identify patients at any point of entry to care.

Intuit Company Profile

Intuit Inc. is a provider of business and financial management solutions for small businesses, consumers and accounting professionals. The Company operates through three segments: Small Business, Consumer Tax and ProConnect. The Small Business segment serves and advises small businesses and the accounting professionals, and includes QuickBooks financial and business management online services and desktop software, payroll solutions, and payment processing solutions. The Small Business segment also includes third-party applications that integrate with the Company’s offerings. The Consumer Tax segment targets consumers and includes TurboTax products and services, which enable individuals to prepare and file their own federal and state personal income tax returns. The ProConnect segment targets professional accountants in the United States and Canada. Its ProConnect professional tax offerings include Lacerte, ProSeries, ProFile and ProConnect Tax Online.

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