Digimarc Corporation (NASDAQ: DMRC) is one of 66 public companies in the “Application Software” industry, but how does it compare to its competitors? We will compare Digimarc Corporation to related businesses based on the strength of its valuation, dividends, earnings, risk, analyst recommendations, institutional ownership and profitability.

Institutional & Insider Ownership

52.8% of Digimarc Corporation shares are owned by institutional investors. Comparatively, 68.5% of shares of all “Application Software” companies are owned by institutional investors. 7.5% of Digimarc Corporation shares are owned by company insiders. Comparatively, 15.7% of shares of all “Application Software” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Digimarc Corporation and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Digimarc Corporation 0 1 4 0 2.80
Digimarc Corporation Competitors 181 1522 2914 98 2.62

Digimarc Corporation currently has a consensus price target of $45.75, indicating a potential upside of 28.15%. As a group, “Application Software” companies have a potential upside of 3.10%. Given Digimarc Corporation’s stronger consensus rating and higher probable upside, equities analysts plainly believe Digimarc Corporation is more favorable than its competitors.

Earnings and Valuation

This table compares Digimarc Corporation and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Digimarc Corporation $22.43 million -$22.78 million -15.87
Digimarc Corporation Competitors $761.35 million $137.63 million 35.33

Digimarc Corporation’s competitors have higher revenue and earnings than Digimarc Corporation. Digimarc Corporation is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Digimarc Corporation has a beta of -1.08, suggesting that its stock price is 208% less volatile than the S&P 500. Comparatively, Digimarc Corporation’s competitors have a beta of 1.61, suggesting that their average stock price is 61% more volatile than the S&P 500.

Profitability

This table compares Digimarc Corporation and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Digimarc Corporation -90.69% -31.33% -29.31%
Digimarc Corporation Competitors -66.89% -94.61% -18.59%

Summary

Digimarc Corporation competitors beat Digimarc Corporation on 8 of the 12 factors compared.

About Digimarc Corporation

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.

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