Financial Survey: Xerox (XRX) and Identiv (INVE)

Xerox (NYSE: XRX) and Identiv (NASDAQ:INVE) are both business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, institutional ownership and risk.

Volatility and Risk

Xerox has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, Identiv has a beta of -0.08, suggesting that its share price is 108% less volatile than the S&P 500.

Profitability

This table compares Xerox and Identiv’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Xerox 1.74% 17.08% 5.62%
Identiv -15.40% -32.30% -12.10%

Earnings and Valuation

This table compares Xerox and Identiv’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Xerox $10.27 billion 0.60 $195.00 million $3.48 6.90
Identiv $60.22 million 0.97 -$8.13 million ($0.38) -10.18

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Xerox and Identiv, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Xerox 0 4 4 0 2.50
Identiv 0 0 1 0 3.00

Xerox currently has a consensus price target of $37.08, indicating a potential upside of 54.51%. Identiv has a consensus price target of $10.00, indicating a potential upside of 158.40%. Given Identiv’s stronger consensus rating and higher probable upside, analysts plainly believe Identiv is more favorable than Xerox.

Institutional & Insider Ownership

83.0% of Xerox shares are held by institutional investors. Comparatively, 29.9% of Identiv shares are held by institutional investors. 0.2% of Xerox shares are held by insiders. Comparatively, 10.5% of Identiv shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

Xerox pays an annual dividend of $1.00 per share and has a dividend yield of 4.2%. Identiv does not pay a dividend. Xerox pays out 28.7% of its earnings in the form of a dividend. Xerox has raised its dividend for 5 consecutive years.

Summary

Xerox beats Identiv on 12 of the 17 factors compared between the two stocks.

About Xerox

Xerox Corporation designs, develops, and sells document management systems and solutions worldwide. It offers managed document services, including managed print services and multi-channel communication services, as well as a range of digital solutions, such as workflow automation services, content management, and digitization services. The company also provides desktop monochrome and color printers, and multifunction printers; copiers, digital printing presses and light production devices, and solutions; graphic communications and commercial printers; inkjet presses; and FreeFlow portfolio of software solutions for the automation and integration of print jobs processing. In addition, it sells paper products, wide-format systems, and global imaging systems network integration solutions. The company sells its products and services directly to its customers through sales force, as well as through independent agents, dealers, value-added resellers, systems integrators, and the Web. Xerox Corporation was founded in 1906 and is headquartered in Norwalk, Connecticut.

About Identiv

Identiv, Inc. operates as a security technology company that secures and manages access to physical places, things, and information primarily in the Americas, Europe, the Middle-East, and the Asia-Pacific. Its Premises segment offers modular Hirsch MX controllers that allow customers to start with a small system and expand over time; Hirsch Velocity software platform for centralized management of access and security operations across an organization; federal identity, credential and acess management architecture, an access control system; TouchSecure door readers that provide various features to support security standards; and global services to support system design, deployment, and managed services across customers premises security lifecycle. Its Identity segment provides smart card readers, which include various contact, contactless, portable, and mobile smart card readers, as well as tokens and terminals to enable logical access, and security and identification applications, such as national ID, payment, e-health, and e-government. Its Credentials segment provides NFC and radio frequency identification products, including inlays and inlay-based, and other cards; and labels, tags, and stickers, as well as other radio frequency and integrated circuits components for use in various applications, such as virtual reality, games, loyalty cards, mobile payment systems, transit and event ticketing, and brand authenticity from pharmaceuticals to consumer goods, hospital resource management, cold-chain management, and others. Its All Other segment provides chip drives and digital media readers. Identiv, Inc. markets and sells its products through original equipment manufacturers, dealers, systems integrators, value added resellers, resellers, and Internet, as well as directly to end users. The company was formerly known as Identive Group, Inc. and changed its name to Identiv, Inc. in May 2014. Identiv, Inc. was founded in 1990 and is headquartered in Fremont, California.

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