Opower (OPWR) vs. Digimarc (DMRC) Head-To-Head Review

Opower (NYSE: OPWR) and Digimarc (NASDAQ:DMRC) are both small-cap technology companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, earnings, risk, valuation, analyst recommendations, profitability and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
Opower -30.39% -59.02% -26.51%
Digimarc -90.69% -30.98% -29.02%

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Opower N/A N/A N/A ($0.87) -11.83
Digimarc $21.79 million 18.48 -$21.67 million ($2.25) -15.80

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Opower and Digimarc, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Opower 0 0 0 0 N/A
Digimarc 0 1 3 0 2.75

Digimarc has a consensus target price of $45.33, indicating a potential upside of 27.52%. Given Digimarc’s higher possible upside, analysts plainly believe Digimarc is more favorable than Opower.

Institutional and Insider Ownership

56.0% of Digimarc shares are owned by institutional investors. 7.5% of Digimarc shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Digimarc beats Opower on 6 of the 9 factors compared between the two stocks.

About Opower

Opower, Inc. (Opower) is a provider of cloud-based software to the utility industry. The Company’s software solutions deliver key customer-facing applications that reduce energy demand and provide customer care. The Company’s software analyzes energy data and presents insights that motivate reductions in energy consumption. Its integrated solutions include Demand-Side Management (DSM), which include energy efficiency and demand response, and Customer Care, which include digital engagement and bill advisor. The key components of its energy efficiency solution include home energy reports, smart meter-enabled e-mails and marketplace suite. The key components of its demand response solution include peak day alerts and peak day feedback reports. Opower’s digital engagement solutions include NextWeb platform, outbound communications, points and rewards, and rates engine. The Key components of its Bill Advisor solution include customer service interface and proactive alerts.

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.

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