Critical Comparison: Iota Communications (OTCMKTS:IOTC) & HealthEquity (NASDAQ:HQY)

Iota Communications (OTCMKTS:IOTC) and HealthEquity (NASDAQ:HQY) are both business services companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.

Insider & Institutional Ownership

99.6% of HealthEquity shares are owned by institutional investors. 6.2% of Iota Communications shares are owned by company insiders. Comparatively, 2.2% of HealthEquity shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Iota Communications and HealthEquity’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Iota Communications	N/A	N/A	N/A
HealthEquity	8.41%	9.70%	6.08%

Analyst Recommendations

This is a summary of current ratings for Iota Communications and HealthEquity, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Iota Communications	0	0	0	0	0.00
HealthEquity	0	1	10	1	3.00

HealthEquity has a consensus target price of $112.58, indicating a potential upside of 42.87%. Given HealthEquity’s stronger consensus rating and higher possible upside, analysts clearly believe HealthEquity is more favorable than Iota Communications.

Earnings & Valuation

This table compares Iota Communications and HealthEquity”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Iota Communications	N/A	N/A	N/A	N/A	N/A
HealthEquity	$1.20 billion	5.68	$55.71 million	$1.09	72.29

HealthEquity has higher revenue and earnings than Iota Communications.

Summary

HealthEquity beats Iota Communications on 9 of the 10 factors compared between the two stocks.

About Iota Communications

Iota Communications, Inc., through its subsidiaries, provides Internet of Things (IoT) solutions. It also provides energy conservation solutions. The company operates through Iota Networks, Iota Commercial Solutions, Iota Communications, and Iota Holdings. In addition, the company offers delphi360, a wireless connectivity and data analytics platform to integrate with devices and sensors, as well as provides BrightAI, an analytic platform that gathers information from sensor connectivity. Further, it provides IoT-based LED and smart lighting. Additionally, it offers smart building solutions, a platform for data management. Furthermore, the company serves healthcare, commercial real estate, education, utility, retail, and manufacturing industries; and city and municipals. Iota Communications, Inc. is based in Allentown, Pennsylvania.

About HealthEquity

HealthEquity, Inc. provides technology-enabled services platforms to consumers and employers in the United States. The company offers cloud-based platforms for individuals to make health saving and spending decisions, pay healthcare bills, receive personalized benefit information, earn wellness incentives, grow their savings, and make investment choices; and health savings accounts. It also provides investment platform; and online-only automated investment advisory services through Advisor, a Web-based tool. In addition, the company offers flexible spending accounts; health reimbursement arrangements; and Consolidated Omnibus Budget Reconciliation Act continuation services, as well as administers pre-tax commuter benefit programs. It serves clients through a direct sales force; benefits brokers and advisors; and a network of health plans, benefits administrators, benefits brokers and consultants, and retirement plan record-keepers. HealthEquity, Inc. was incorporated in 2002 and is based in Draper, Utah.