CyberArk Software (NASDAQ: CYBR) and Digimarc Corporation (NASDAQ:DMRC) are both large-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, profitability, analyst recommendations, dividends and risk.

Insider & Institutional Ownership

81.4% of CyberArk Software shares are held by institutional investors. Comparatively, 52.8% of Digimarc Corporation shares are held by institutional investors. 7.5% of Digimarc Corporation 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.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for CyberArk Software and Digimarc Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CyberArk Software 0 9 8 0 2.47
Digimarc Corporation 0 1 4 0 2.80

CyberArk Software presently has a consensus target price of $49.06, suggesting a potential upside of 10.25%. Given Digimarc Corporation’s stronger consensus rating and higher probable upside, analysts clearly believe Digimarc Corporation is more favorable than CyberArk Software.

Risk & Volatility

CyberArk Software has a beta of 2.56, suggesting that its stock price is 156% more volatile than the S&P 500. Comparatively, Digimarc Corporation has a beta of -1.2, suggesting that its stock price is 220% less volatile than the S&P 500.

Earnings and Valuation

This table compares CyberArk Software and Digimarc Corporation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
CyberArk Software $216.61 million 7.14 $28.12 million $0.63 70.64
Digimarc Corporation $21.79 million 19.06 -$21.67 million ($2.25) -16.29

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

Profitability

This table compares CyberArk Software and Digimarc Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CyberArk Software 9.24% 7.33% 5.44%
Digimarc Corporation -90.69% -30.98% -29.02%

Summary

CyberArk Software beats Digimarc Corporation on 9 of the 13 factors compared between the two stocks.

About CyberArk Software

CyberArk Software Ltd is an Israel-based provider of information technology (IT) security solutions that protects organizations from cyber-attacks. The Company’s software solutions are focused on protecting privileged accounts, which have become a critical target in the lifecycle of cyber-attacks. The Company’s Privileged Account Security Solution consists of various products, such as Shares Technology Platform, Enterprise Password Vault, SSH Key Manager, Privileged Session Manager, Privileged Threat Analytics, Application Identity Manager, CyberArk-Conjur, Endpoint Privilege Manager and On-Demand Privileges Manager. The Company’s products provide protection against external and internal cyber threats and enables detection and neutralization of attacks. The Company’s Enterprise Password Vault provides customers with a tool to manage and protect all privileged accounts across an entire organization, including physical, virtual or cloud-based assets.

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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