American Acquisition Opportunity (NASDAQ:AMAO – Get Rating) and InterDigital (NASDAQ:IDCC – Get Rating) are both business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.
Earnings and Valuation
This table compares American Acquisition Opportunity and InterDigital’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Acquisition Opportunity | N/A | N/A | $3.89 million | N/A | N/A |
| InterDigital | $457.79 million | 4.73 | $93.69 million | $3.09 | 23.62 |
InterDigital has higher revenue and earnings than American Acquisition Opportunity.
Risk & Volatility
Profitability
This table compares American Acquisition Opportunity and InterDigital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Acquisition Opportunity | N/A | -88.17% | 10.45% |
| InterDigital | 20.47% | 13.02% | 5.32% |
Insider and Institutional Ownership
80.8% of American Acquisition Opportunity shares are held by institutional investors. Comparatively, 84.0% of InterDigital shares are held by institutional investors. 19.8% of American Acquisition Opportunity shares are held by insiders. Comparatively, 1.2% of InterDigital shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for American Acquisition Opportunity and InterDigital, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Acquisition Opportunity | 0 | 0 | 0 | 0 | N/A |
| InterDigital | 1 | 0 | 2 | 0 | 2.33 |
InterDigital has a consensus price target of $70.00, suggesting a potential downside of 4.08%. Given InterDigital’s higher probable upside, analysts plainly believe InterDigital is more favorable than American Acquisition Opportunity.
Summary
InterDigital beats American Acquisition Opportunity on 8 of the 10 factors compared between the two stocks.
About American Acquisition Opportunity
American Acquisition Opportunity Inc. does not have significant operations. It intends to effect a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization, or other similar business combination with one or more target businesses in the land holdings and resources industry in the United States. The company was incorporated in 2021 and is based in Fishers, Indiana. American Acquisition Opportunity Inc. operates as a subsidiary of American Opportunity Ventures LLC.
About InterDigital
InterDigital, Inc. engages in the design and development of technologies that enable and enhance wireless communications, and capabilities. It focuses on mobile technology and devices, which includes cellular wireless technology, Internet of Things, technology, video coding & transmission, sensor and sensor fusion technology. It also offers digital cellular and wireless products and networks, including 2G, 3G, 4G, 5G and IEEE 802-related products and networks. The company was founded by Seligsohn I. Sherwin in 1972 and is headquartered in Wilmington, DE.
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