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ChinaCache International Holdings Ltd. versus Internap Corporation Head to Head Compare


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This is a head to head compare of ChinaCache International Holdings Ltd. (NASDAQ:CCIH) and Internap Corporation (NASDAQ:INAP) . We will compare the two companies on revenue growth, earnings, revenue per employee, operating margins, free cash flow and valuation. The head to head compare assigns 100 points in total.



Before we dive into the analysis, we will look at the stock returns for each company over the last three months, six months and the last year. The stock returns do not impact the head to head compare scores which are focused on the fundamentals of each company, but ultimately stock returns are are still a critical piece to a full analysis and compare.


Stock Returns
Symbol 3-Months 6-Months One-Year Fundamentals
CCIH -55.8% -69.6% -86.5%
INAP +89.7% +116.6% +18.1%

Internap Corporation has a higher fundamental rating then ChinaCache International Holdings Ltd. which has an impact on the head-to-head comparison. The CML Star Rating is an objective, quantifiable measure of a company's operating and financial condition. The rating is computed by measuring numerous elements of the company's current financial data and their associated changes over time.

Now, let's dive into the two companies to compare them.

➤ Income Statement
First we turn to the income statement and compare revenue, earnings and revenue per employee for both companies. We note that simple revenue comparisons do not impact the rating.

Internap Corporation has larger revenue in the last year than ChinaCache International Holdings Ltd.. Raw revenue comps do not affect the head to head rating.
Revenue

Both CCIH and INAP have negative earnings over the last year. But, the difference in the size of losses has limited impact on the head-to-head comparison.

Net Income


INAP generates massively larger revenue per employee ($490,000) than CCIH ($185,000).

Revenue per Employee
($ Millions)


➤ Margins
Next we create some derived metrics to compare the the amount of revenue earned per dollar of expense and the amount of free cash flow earned per dollar of revenue. Margins are one of the fairest ways to compare companies since they remove some of the bias of large versus small numbers.

Both Internap Corporation and ChinaCache International Holdings Ltd. generate an operating loss, although INAP shows a notably better operating margin.

Revenue per Dollar of Expense


INAP generates $0.06 in levered free cash flow for every $1 of revenue, while CCIH generates a cash flow loss of $-0.21 per $1 of revenue.

Free Cash Flow
per Dollar of Revenue


➤ Growth
Finally we compare the financial metrics related to growth: revenue growth rates and price to sales.

Both companies have shrinking revenue. ChinaCache International Holdings Ltd. revenue is shrinking massively faster than Internap Corporation.

Revenue Growth


For every $1 in revenue, the stock market prices in $0.38 in market cap for CCIH and $0.32 in market cap for INAP.

Price to Sales

Internap Corporation (NASDAQ:INAP)
defeats
ChinaCache International Holdings Ltd. (NASDAQ:CCIH) : 89 to 11