Equinix (EQIX) & ExactTarget (ET) Critical Review

Equinix (NASDAQ: EQIX) and ExactTarget (NYSE:ET) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, risk, earnings, profitability, valuation and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Equinix and ExactTarget, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Equinix 0 4 13 0 2.76
ExactTarget 0 0 0 0 N/A

Equinix currently has a consensus price target of $465.59, indicating a potential upside of 0.78%. Given Equinix’s higher possible upside, research analysts clearly believe Equinix is more favorable than ExactTarget.

Earnings & Valuation

This table compares Equinix and ExactTarget’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Equinix $3.88 billion 9.28 $1.63 billion $2.73 169.23
ExactTarget N/A N/A N/A N/A N/A

Equinix has higher revenue and earnings than ExactTarget.

Profitability

This table compares Equinix and ExactTarget’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Equinix 5.18% 5.51% 2.01%
ExactTarget N/A N/A N/A

Institutional & Insider Ownership

94.4% of Equinix shares are owned by institutional investors. 0.6% of Equinix shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

Equinix pays an annual dividend of $8.00 per share and has a dividend yield of 1.7%. ExactTarget does not pay a dividend. Equinix pays out 293.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Equinix beats ExactTarget on 9 of the 10 factors compared between the two stocks.

About Equinix

Equinix, Inc. (Equinix) connects businesses with partners and customers worldwide through a global platform of data centers. The Company connects approximately 4000 customers, across the Americas, Europe, Middle East and Africa (EMEA) and Asia-Pacific. Platform Equinix combines international business exchange (IBX) data centers, a global footprint and ecosystems. The Company offers each customer a choice of business partners and solutions based on their colocation, interconnection and managed IT service needs. Equinix offers customers direct interconnection to an aggregation of bandwidth providers, including the Internet Service Providers (ISPs), broadband access networks (DSL/cable) and international carriers. Its customers include carriers and other bandwidth providers, cloud and information technology (IT) services providers, content providers, financial companies and global enterprises. In July 2014, it acquired ALOG Data Centers of Brazil S.A.

About ExactTarget

ExactTarget, Inc. is a global provider of cross-channel, interactive marketing software-as-a-service (SaaS) solutions. The Company’s solutions provide marketers with a suite of integrated applications. The Company’s suite of cross-channel, interactive marketing applications include e-mail, mobile, social media and sites, is built on its flexible multi-tenant SaaS platform. These channel applications are integrated with its campaign management, calendaring, dashboard, integrated reporting, marketing automation and data management tools. The Company also provides open application programming interfaces (APIs) and developer tools that allow third parties to embed its technology into their solutions and build applications on its platform. The Company generates revenue through the sale of subscriptions to its suite of cross-channel, interactive marketing SaaS solutions and the delivery of professional services. In October 2012, it acquired iGoDigital.

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