Based on the aggregated intelligence of 145,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, database provider infoGROUP (NASDAQ:IUSA) has received a distressing two-star ranking.

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

infoGROUP facts

Headquarters (Founded)

Omaha, Neb. (1972)

Market Cap

$489.5 million

Industry

Data processing and outsourced services

Trailing-12-Month Revenue

$665.6 million

Management

President/CEO Bill Fairfield
CFO Thomas Oberdorf

Trailing-12-Month Return on Equity

4.1%

Cash / Debt

$8.8 million / $187.1 million

1-Year Return

147%

Competitors

salesforce.com (NYSE:CRM)
Dun & Bradstreet (NYSE:DNB)

CAPS Members Bearish on IUSA Also Bearish on

ARM Holdings (NASDAQ:ARMH)
Ford Motor (NYSE:F)

CAPS Members Bullish on IUSA Also Bullish on

Google (NASDAQ:GOOG)
General Electric (NYSE:GE)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 13% of the 82 members who have rated infoGROUP believe the stock will underperform the S&P 500 going forward. These bears include All-Stars UltraContrarian and TSIF, both of whom are ranked in the top 2% of our community.

A little over a month ago, UltraContrarian kindly warned Fools that infoGROUP has "balance sheet and liquidity problems, plus their market is mature and oversaturated." Our CAPS All-Star continues: "Business is getting worse yet the stock is going up. Due for a hard correction."

In a pitch from last month, TSIF addressed Mr. Market's ever-increasing view of the stock as a prime takeover target:

What's the premium if they do get acquired? What's the downside if they don't? infoGroup has had a steep [quarter-to-quarter]... decline in sales. Not unusual in a recession, but not anything to toot your own horn over or to expect a premium. Net tangible assets are improving, but still a NEGATIVE... with $190 [million] in... debt. Revenue is down ... from a year ago and [quarterly] income barely positive. I don't think infoGroup is a bad company, I just doubt their being bought out and the serious speculation in upside the equity has received.

What do you think about infoGROUP, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!  

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. salesforce.com and Google are recommendations of Motley Fool Rule Breakers. The Fool's disclosure policy always gets a perfect score.