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INOD vs RDWR

INOD
Innodata Inc.
BEARISH
Price
$35.58
Market Cap
$1.16B
Sector
Technology
AI Confidence
85%
RDWR
Radware Ltd.
NEUTRAL
Price
$25.76
Market Cap
$1.12B
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
INOD
38.67
RDWR
57.24
Forward P/E
INOD
20.51
RDWR
19.75
P/B Ratio
INOD
10.74
RDWR
3.19
P/S Ratio
INOD
4.61
RDWR
3.71
EV/EBITDA
INOD
25.3
RDWR
38.98

Profitability

Gross Margin
INOD
40.15%
RDWR
80.67%
Operating Margin
INOD
15.1%
RDWR
4.13%
Profit Margin
INOD
12.79%
RDWR
6.71%
ROE
INOD
37.76%
RDWR
5.42%
ROA
INOD
17.67%
RDWR
1.08%

Growth

Revenue Growth
INOD
22.3%
RDWR
9.9%
Earnings Growth
INOD
-19.4%
RDWR
123.2%

Financial Health

Debt/Equity
INOD
0.04
RDWR
0.04
Current Ratio
INOD
2.68
RDWR
1.63
Quick Ratio
INOD
2.55
RDWR
1.5

Dividends

Dividend Yield
INOD
--
RDWR
--
Payout Ratio
INOD
0.0%
RDWR
0.0%

AI Verdict

INOD BEARISH

INOD presents a stark contrast between a clean balance sheet and severe valuation and technical deterioration. With a Piotroski F-Score of 4/9 (Stable) and a Graham Number of $8.28, the stock is trading at a massive premium to its deterministic fair value. While the company maintains a very low debt-to-equity ratio (0.04) and strong ROE (37.76%), these are offset by negative earnings growth (-19.4% YoY) and a catastrophic 6-month price decline of 57.3%. The disconnect between the analyst target price ($91.25) and the current price action suggests a significant market correction is underway.

Strengths
Extremely low leverage (Debt/Equity: 0.04)
Strong liquidity position (Current Ratio: 2.68)
High Return on Equity (ROE: 37.76%)
Risks
Severe valuation gap (Price $35.58 vs Graham Number $8.28)
Negative earnings growth (-19.4% YoY)
Heavy insider selling ($16M in the last 6 months)
RDWR NEUTRAL

RDWR presents a dichotomy between fundamental health and valuation. While the Piotroski F-Score of 4/9 indicates stable but not strong financial health, the company boasts a pristine balance sheet with negligible debt (D/E 0.04) and exceptional gross margins (80.67%). However, the stock trades at a significant premium to its Graham Number ($9.04) and Intrinsic Value ($13.28), with a PEG ratio of 22.79 suggesting extreme overvaluation relative to current growth. The bullish case rests on explosive earnings growth (123% YoY) and a reasonable forward P/E of 19.75, but bearish technicals and weak insider sentiment temper the outlook.

Strengths
Extremely low leverage with a Debt/Equity ratio of 0.04
High gross margins (80.67%) indicating strong pricing power or low COGS
Explosive earnings growth (123.20% YoY) and consistent EPS beats
Risks
Significant valuation gap between current price ($25.76) and intrinsic value ($13.28)
Very high PEG ratio (22.79) indicating the price has outpaced growth
Bearish technical trend (0/100) and weak insider sentiment (40/100)

Compare Another Pair

INOD vs RDWR: Head-to-Head Comparison

This page compares Innodata Inc. (INOD) and Radware Ltd. (RDWR) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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