ARC Group Worldwide (NASDAQ: ARCW) and Inteliquent (NASDAQ:IQNT) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, analyst recommendations, risk, dividends and valuation.
Institutional & Insider Ownership
16.4% of ARC Group Worldwide shares are owned by institutional investors. Comparatively, 88.0% of Inteliquent shares are owned by institutional investors. 3.2% of ARC Group Worldwide shares are owned by company insiders. Comparatively, 5.5% of Inteliquent shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares ARC Group Worldwide and Inteliquent’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ARC Group Worldwide | -0.70% | -7.31% | -2.91% |
| Inteliquent | 9.43% | 19.39% | 16.35% |
Analyst Ratings
This is a summary of current ratings and target prices for ARC Group Worldwide and Inteliquent, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ARC Group Worldwide | 0 | 1 | 1 | 0 | 2.50 |
| Inteliquent | 1 | 0 | 1 | 0 | 2.00 |
ARC Group Worldwide presently has a consensus target price of $5.75, suggesting a potential upside of 139.58%. Inteliquent has a consensus target price of $24.00, suggesting a potential upside of 4.80%. Given ARC Group Worldwide’s stronger consensus rating and higher possible upside, equities research analysts plainly believe ARC Group Worldwide is more favorable than Inteliquent.
Earnings & Valuation
This table compares ARC Group Worldwide and Inteliquent’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| ARC Group Worldwide | $111.99 million | 0.39 | $9.57 million | ($0.04) | -60.00 |
| Inteliquent | N/A | N/A | N/A | $1.05 | 21.81 |
ARC Group Worldwide has higher revenue and earnings than Inteliquent. ARC Group Worldwide is trading at a lower price-to-earnings ratio than Inteliquent, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
ARC Group Worldwide has a beta of 3.42, meaning that its stock price is 242% more volatile than the S&P 500. Comparatively, Inteliquent has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500.
Dividends
Inteliquent pays an annual dividend of $0.47 per share and has a dividend yield of 2.1%. ARC Group Worldwide does not pay a dividend. Inteliquent pays out 44.8% of its earnings in the form of a dividend.
Summary
Inteliquent beats ARC Group Worldwide on 7 of the 12 factors compared between the two stocks.
About ARC Group Worldwide
ARC Group Worldwide, Inc. is a manufacturing company. The Company has four segments: Precision Components Group, 3DMT Group, Flanges and Fittings Group, and Wireless Group. It provides a set of manufacturing solutions, from design and prototyping through production. Through the Company’s product offering, it provides its customers with a prototyping and production solution for both precision metal and plastic fabrication. The Precision Components Group companies provide fabricated metal components using processes, consisting of metal injection molding, precision metal stamping and hermetic sealing. The 3DMT Group focuses on rapid prototyping, short-run production and rapid tooling. The Flange and Fittings Group consists of General Flange and Forge. The Wireless Group focuses on wireless broadband technology related to propagation and optimization. The Wireless Group designs and develops hardware, including antennas, radios and related accessories.
About Inteliquent
Inteliquent, Inc. is a provider of voice telecommunications services primarily on a wholesale basis. The Company offers its services using an all-Internet Protocol (IP) network, which enables to deliver connectivity for a range of media, including voice, and data and video. The Company’s solutions enable carriers and other providers to deliver voice traffic or other services where they do not have their own network. These solutions are called off-net services. It also provides solutions to customers, such as over-the-top (OTT) providers. The Company offers a range of services, including Local Transit Service, Long Distance Service, Switched Access Service, International Voice Service, Direct Inward Dialing Service and 8XX (Toll-Free) Service. The Company offers an alternative to facilitate the exchange of local traffic between various carriers by using its tandem switches instead of the Incumbent Local Exchange Carriers’ (ILECs’) tandems or direct connects.
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