Datawatch Corporation (DWCH) versus Brightcove (BCOV) Critical Analysis
Datawatch Corporation (NASDAQ: DWCH) and Brightcove (NASDAQ:BCOV) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, earnings, profitability, analyst recommendations, risk and institutional ownership.
Insider and Institutional Ownership
40.7% of Datawatch Corporation shares are held by institutional investors. Comparatively, 62.6% of Brightcove shares are held by institutional investors. 17.7% of Datawatch Corporation shares are held by company insiders. Comparatively, 12.7% of Brightcove shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This table compares Datawatch Corporation and Brightcove’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and price targets for Datawatch Corporation and Brightcove, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Datawatch Corporation currently has a consensus price target of $10.00, indicating a potential downside of 6.54%. Brightcove has a consensus price target of $7.67, indicating a potential upside of 11.92%. Given Brightcove’s higher possible upside, analysts clearly believe Brightcove is more favorable than Datawatch Corporation.
Risk & Volatility
Datawatch Corporation has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500. Comparatively, Brightcove has a beta of 1.81, meaning that its share price is 81% more volatile than the S&P 500.
Earnings & Valuation
This table compares Datawatch Corporation and Brightcove’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Datawatch Corporation||$34.67 million||3.76||-$3.87 million||($0.43)||-24.88|
|Brightcove||$153.34 million||1.53||-$10.62 million||($0.55)||-12.45|
Datawatch Corporation has higher revenue, but lower earnings than Brightcove. Datawatch Corporation is trading at a lower price-to-earnings ratio than Brightcove, indicating that it is currently the more affordable of the two stocks.
Datawatch Corporation beats Brightcove on 7 of the 12 factors compared between the two stocks.
About Datawatch Corporation
Datawatch Corporation is engaged in the design, development, marketing, distribution and support of business computer software primarily for the self-service data preparation and visual data discovery markets. The Company also provides services, including implementation and support of its software products, as well as training on their use and administration. The Company’s product family includes Datawatch Monarch, Datawatch Panopticon and Datawatch Report Mining Server (RMS). The Company offers its enterprise products through perpetual licenses and subscription pricing models. The Company also offers educational services for customers and partners implementing and learning about the platform, maintenance and support, and professional services to provide in-depth technical assistance for software implementations. The Company offers an array of live and virtual classroom instruction, including private onsite classes.
Brightcove Inc. is a global provider of cloud-based services for video. The Company’s products and services include Brightcove Video Cloud (Video Cloud), Brightcove Zencoder (Zencoder), Brightcove Once (Once), Brightcove Perform (Perform), Brightcove Video Marketing Suite (Video Marketing Suite), Brightcove Lift (Lift), Brightcove OTT Flow (OTT Flow) and Brightcove Enterprise Video Suite (Enterprise Video Suite), among others. Video Cloud is an online video platform. Video Cloud enables its customers to publish and distribute video to Internet-connected devices. Zencoder is a cloud-based video encoding service. Once is a cloud-based advertisement insertion and video stitching service. Perform is a cloud-based service for creating and managing video player experiences. Video Marketing Suite is a suite of video technologies designed to address the needs of marketers to drive awareness, engagement and conversion.
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