FalconStor Software (OTCMKTS:FALC) and Infinite Group (OTCMKTS:IMCI) Head-To-Head Survey

Insider & Institutional Ownership

9.5% of FalconStor Software shares are held by institutional investors. 35.0% of Infinite Group shares are held by company insiders. Comparatively, 52.8% of FalconStor Software shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Infinite Group has a beta of -0.11, suggesting that its stock price is 111% less volatile than the S&P 500. Comparatively, FalconStor Software has a beta of 2.16, suggesting that its stock price is 116% more volatile than the S&P 500.

Valuation and Earnings

This table compares Infinite Group and FalconStor Software”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Infinite Group	$7.00 million	0.00	-$3.56 million	N/A	N/A
FalconStor Software	$11.60 million	0.89	$980,000.00	($0.01)	-144.86

FalconStor Software has higher revenue and earnings than Infinite Group.

Profitability

This table compares Infinite Group and FalconStor Software’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Infinite Group	N/A	N/A	N/A
FalconStor Software	14.90%	-9.90%	15.87%

Summary

FalconStor Software beats Infinite Group on 8 of the 9 factors compared between the two stocks.

About Infinite Group

Infinite Group, Inc. develops cybersecurity software in the United States. The company offers Nodeware, a patented software-as-a-service solution that automates network asset identification, and cybersecurity vulnerability management and monitoring; and distributes Webroot, a cloud-based endpoint security platform solution. It also provides cybersecurity consulting services that include incident response, security awareness training, risk management, IT governance and compliance, security assessment, and penetration testing offerings to channel partners and direct customers for various vertical markets, such as banking, manufacturing, supply chain, and technology. In addition, the company offers managed support services related to information security, including troubleshooting, backend analysis, and technical and security support for mission critical technical infrastructure; and sells third party software licenses. The company was formerly known as Infinite Machines Corp. and changed its name to Infinite Group, Inc. in January 1998. Infinite Group, Inc. was incorporated in 1986 and is headquartered in Pittsford, New York.

About FalconStor Software

FalconStor Software, Inc., a storage software company, enables enterprise customers and managed service providers to secure, migrate, and protect their data worldwide. It offers FalconStor Virtual Tape Library, a software that emulates and replaces cumbersome physical tape libraries for archive related data preservation without being replacing their enterprise backup and archive software and associated processes; FalconStor StorSafe, a long-term archive data management software; FalconStor Continuous Data Protector delivers instant data availability, and reliable recovery; and FalconStor Network Storage Server for data storage virtualization and business continuity in heterogeneous environments. The company also provides FalconStor StorSigh, a long-term archive and business continuity driven data replication from one centralized management point; FalconStor RecoverTrac Disaster Recovery Technology that streamlines the implementation, testing, and execution of disaster recovery operations; and FalconStor MicroScanTM Technology, which minimizes the amount of data transferred during replication by eliminating inefficiencies at the application and file system layer. It sells its products through authorized partners, value-added resellers, solution providers, system integrators, direct market resellers, distributors, managed service providers, cloud service providers, and original equipment manufacturers, as well as directly to customers. The company was incorporated in 1994 and is headquartered in Austin, Texas.