Head to Head Review: Kenexa (KNXA) versus Intuit (INTU)

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

Dividends

Intuit pays an annual dividend of $1.56 per share and has a dividend yield of 1.0%. Kenexa does not pay a dividend. Intuit pays out 41.4% of its earnings in the form of a dividend.

Institutional & Insider Ownership

86.3% of Intuit shares are held by institutional investors. 5.6% of Intuit shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for Kenexa and Intuit, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kenexa 0 0 0 0 N/A
Intuit 2 5 12 0 2.53

Intuit has a consensus target price of $152.65, indicating a potential downside of 1.22%.

Profitability

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

Net Margins Return on Equity Return on Assets
Kenexa N/A N/A N/A
Intuit 18.62% 77.56% 22.36%

Earnings and Valuation

This table compares Kenexa and Intuit’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kenexa N/A N/A N/A ($0.28) N/A
Intuit $5.18 billion 7.63 $971.00 million $3.77 40.99

Intuit has higher revenue and earnings than Kenexa. Kenexa 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 Kenexa on 9 of the 10 factors compared between the two stocks.

About Kenexa

Provides integrated human capital management and technology solutions. The Company markets a suite of Web-based applications that automates recruitment, skills testing, and management processes for its client organizations. Kenexa hosts online career centers and job postings, skills tests, training materials, and surveys, all of which maintain the look of its clients’ Web sites. Kenexa also offers services such as talent acquisition and training and retention consulting.

About Intuit

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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