MINDBODY (MB) and iPass (IPAS) Head to Head Review

MINDBODY (NASDAQ: IPAS) and iPass (NASDAQ:IPAS) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.

Volatility & Risk

MINDBODY has a beta of -0.19, suggesting that its share price is 119% less volatile than the S&P 500. Comparatively, iPass has a beta of -0.19, suggesting that its share price is 119% less volatile than the S&P 500.

Earnings and Valuation

This table compares MINDBODY and iPass’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MINDBODY $182.63 million 10.34 -$14.79 million ($0.30) -131.83
iPass $54.40 million 0.31 -$20.55 million ($3.10) -0.65

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

Profitability

This table compares MINDBODY and iPass’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MINDBODY -11.85% -6.83% -4.84%
iPass -40.13% -130,046.80% -105.22%

Institutional & Insider Ownership

96.8% of MINDBODY shares are held by institutional investors. Comparatively, 15.5% of iPass shares are held by institutional investors. 6.0% of MINDBODY shares are held by insiders. Comparatively, 8.2% of iPass shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MINDBODY 0 3 9 0 2.75
iPass 0 0 3 0 3.00

MINDBODY presently has a consensus target price of $39.23, suggesting a potential downside of 0.82%. iPass has a consensus target price of $11.00, suggesting a potential upside of 447.26%. Given iPass’ stronger consensus rating and higher probable upside, analysts clearly believe iPass is more favorable than MINDBODY.

Summary

MINDBODY beats iPass on 9 of the 12 factors compared between the two stocks.

About MINDBODY

MINDBODY, Inc. operates a cloud-based business management software and payments platform for the small and medium-sized businesses in the wellness services industry. Its platform enables businesses to run, market, and build scheduling and online booking, performance tracking, staff management, client relationship management, integrated payment processing, retail point-of-sale, purchase tracking, inventory, hardware integration, analytics and reporting, branded Web, mobility, social integration, client acquisition dashboard, security and compliance, and integration with other cloud-based partners for yoga, Pilates, indoor cycling, group and personal training, boutique fitness, salons, spas, and integrative health businesses. The company offers its software platform to its subscribers as a subscription-based service. It also connects consumers with businesses through its MINDBODY app, a consumer-facing mobile application that allows consumers to discover, evaluate, book, and pay for wellness services; MINDBODY Network, a fee-based platform that connects its customers with local consumers through the MINDBODY app and third-party partner applications, or Websites; and MINDBODY API Platform and Partner Ecosystem, a platform focuses in areas, such as marketing automation, accounting, loyalty, mobile, and social interactions. The company sells its subscriptions through a direct sales team primarily in San Luis Obispo, California; the United Kingdom; and Australia. MINDBODY, Inc. was founded in 2001 and is headquartered in San Luis Obispo, California.

About iPass

iPass Inc. provides mobile connectivity that enables Wi-Fi access on various mobile devices in the United States and internationally. It offers mobile connectivity services that provide cloud-based solution allowing customers and their users access to its Wi-Fi network to stay connected to the people and information. The company provides business to business mobile connectivity solutions to large and small enterprises, as well as to strategic partnerships comprising original equipment manufacturers, loyalty programs, software product and service providers, and communication companies; and iPass SmartConnect that takes the guesswork out of Wi-Fi automatically connecting customers to the hotspot for their needs. It operates hotspots at airports, hotels, train stations, convention centers, outdoor venues, inflight, and others. The company sells its services directly through its global sales force, as well as through reseller and strategic partners. iPass Inc. was founded in 1996 and is headquartered in Redwood Shores, California.

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