Based on the aggregated intelligence of 125,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, wireless technology developer InterDigital (NASDAQ:IDCC) has earned a respected four-star ranking. While five-star stocks have been the best performers, our data has shown that four-star stocks still outshine the market by a significant margin, and shouldn't be taken lightly. Conversely, low-rated stocks have woefully lagged the market average.

With that in mind, let's take a closer look at InterDigital's business, and see what CAPS investors are saying about the stock right now.

InterDigital facts

Headquarters (founded)

King of Prussia, Pennsylvania (1972)

Market Cap

$1.16 billion


Communications equipment

TTM Revenue

$224.65 million


CEO William Merritt (since 2005)
CFO Scott McQuilkin (since 2007)

Return on Equity (average, last two years)



Nokia (NYSE:NOK)
UTStarcom (UTSI)

CAPS members bullish on IDCC also bullish on:

Cemex (NYSE:CX)

CAPS members bearish on IDCC also bearish on:

Citigroup (NYSE:C)

Sources: Capital IQ (a division of Standard & Poor's), and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, 924 of the 968 members who have rated InterDigital -- or 95% -- believe the stock will outperform the S&P 500 going forward. These bulls include drbuilder and CAPS All-Star TMFMattyA.

In late October, drbuilder helped explain the inherent bet within the stock:

Once they get the legal battles behind them and just get away from the ongoing fees, any growth will benefit the stock. Recurring revenues have stabilized over the last couple years, so even if the Nokia/Samsung cases don't go well, IDCC will be okay. … With both cases looking favorable, the reward certainly seems worth the risk.

In a pitch from a few days ago, TMFMattyA kindly updated our community on the InterDigital story, and tells Fools there's still time to take advantage:

InterDigital's settlement with Samsung was a huge milestone that has been unfairly ignored by the market. With a lucrative new 3G licensing agreement in place and with many more on the horizon (thanks to its now legitimized patents), expect InterDigital's $188 million cash hoard to grow to the moon. You want to sell wireless handsets in the U.S. -- that's you Apple, LG, Nokia, [Research In Motion (NASDAQ:RIMM)], Samsung, etc. -- you've got to pay InterDigital. It's as simple as that.

What do you think about InterDigital, or any other stock, for that matter? Make your voice heard on Motley Fool CAPS today. More than 125,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. InterDigital, Apple, and Cemex are all Motley Fool Stock Advisor recommendations. Cemex is also a choice of Global Gains, and the Fool owns shares of it. Nokia is an Inside Value pick. The Fool's disclosure policy always gets a perfect score.