Contrasting Digimarc (DMRC) & PTC (PTC)

Digimarc (NASDAQ: DMRC) and PTC (NASDAQ:PTC) are both industrial products companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, dividends, analyst recommendations, valuation and risk.

Insider and Institutional Ownership

53.4% of Digimarc shares are held by institutional investors. Comparatively, 99.9% of PTC shares are held by institutional investors. 7.5% of Digimarc shares are held by insiders. Comparatively, 1.1% of PTC shares are held by 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.

Earnings & Valuation

This table compares Digimarc and PTC’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Digimarc $21.79 million 19.06 -$21.67 million ($2.25) -16.29
PTC $1.16 billion 6.35 $6.23 million $0.04 1,591.25

PTC has higher revenue and earnings than Digimarc. Digimarc is trading at a lower price-to-earnings ratio than PTC, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Digimarc and PTC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Digimarc -90.69% -30.98% -29.02%
PTC 0.54% 8.08% 2.98%

Analyst Ratings

This is a summary of current recommendations and price targets for Digimarc and PTC, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Digimarc 0 1 3 0 2.75
PTC 1 4 12 0 2.65

Digimarc currently has a consensus target price of $45.33, indicating a potential upside of 23.69%. PTC has a consensus target price of $66.31, indicating a potential upside of 4.18%. Given Digimarc’s stronger consensus rating and higher possible upside, analysts clearly believe Digimarc is more favorable than PTC.

Volatility & Risk

Digimarc has a beta of -1.19, indicating that its stock price is 219% less volatile than the S&P 500. Comparatively, PTC has a beta of 1.34, indicating that its stock price is 34% more volatile than the S&P 500.

Summary

PTC beats Digimarc on 10 of the 14 factors compared between the two stocks.

About Digimarc

Digimarc Corporation (Digimarc) enables governments and enterprises to give digital identities to media and objects that computers can sense and recognize. The Company’s Digimarc Discover, Digimarc Barcode and Intuitive Computing Platform are designed to optimize the identification of consumer brand impressions, facilitating mobile-centric shopping. The Company operates through media management solutions segment. The Company’s platform includes means to embed Digimarc Barcodes, invisible and inaudible barcode-like information that is recognizable by smartphones, industrial scanners, and other computer interfaces into various forms of media content, including consumer product packaging. Its Digimarc Barcodes has a range of applications, including facilitating scanning of products at retail checkout, as well as engagement with smartphone-equipped consumers. The Digimarc Barcode allows automatic identification of media without visible computer codes, such as traditional barcodes.

About PTC

PTC Inc. is a global computer software and services company. The Company offers a portfolio of computer-aided design (CAD) modeling, product lifecycle management (PLM) and service lifecycle management (SLM) solutions for manufacturers to create, operate, and service products. It offers a suite of Internet of Things (IoT) solutions that enables its customers to connect, manage and analyze data, and create applications. Its segments include the Solutions Group, the IoT Group and Professional Services. The Solutions Group segment includes its CAD, PLM and SLM products. The IoT Group segment includes its IoT, analytics and augmented reality (AR) solutions. The Professional Services segment includes consulting, implementation and training business. Its IoT products include ThingWorx, KEPServerEX, Vuforia Studio and Vuforia. Its CAD products include Creo and Mathcad. Its PLM products include Windchill, Integrity, Navigate and Creo View. Its SLM products include Servigistics and Arbortext.

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