Critical Contrast: Top Image Systems (TISA) and Determine (DTRM)

Top Image Systems (NASDAQ: TISA) and Determine (NASDAQ:DTRM) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, earnings, risk, valuation, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of current ratings for Top Image Systems and Determine, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Top Image Systems 0 1 2 0 2.67
Determine 0 1 2 0 2.67

Top Image Systems currently has a consensus target price of $2.50, indicating a potential upside of 123.21%. Determine has a consensus target price of $3.83, indicating a potential upside of 98.62%. Given Top Image Systems’ higher possible upside, equities research analysts clearly believe Top Image Systems is more favorable than Determine.

Risk & Volatility

Top Image Systems has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500. Comparatively, Determine has a beta of 1.79, suggesting that its stock price is 79% more volatile than the S&P 500.

Valuation and Earnings

This table compares Top Image Systems and Determine’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Top Image Systems $31.64 million 0.63 -$6.61 million ($0.49) -2.29
Determine $27.46 million 1.04 -$9.45 million ($0.68) -2.84

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

Profitability

This table compares Top Image Systems and Determine’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Top Image Systems -30.77% -50.20% -24.46%
Determine -30.72% -88.32% -14.81%

Insider & Institutional Ownership

5.4% of Top Image Systems shares are owned by institutional investors. Comparatively, 17.6% of Determine shares are owned by institutional investors. 10.0% of Determine shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Determine beats Top Image Systems on 6 of the 11 factors compared between the two stocks.

Top Image Systems Company Profile

Top Image Systems Ltd. (TIS) is a developer and marketer of intelligent content capture and workflow automation solutions for managing and validating incoming content in any format from any source. The Company’s solutions deliver digital content to the people and applications that drive an enterprise by using advanced network, mobile and cloud technologies. Its products integrate information regardless of the source and format of the data, whether structured, as in the case of application forms or surveys, or semi-structured, such as invoices, purchase orders, checks, freight and shipping bills, and others or unstructured. Its software minimizes the need for manual data entry by automatically capturing, reading, understanding, identifying, processing, classifying and routing the information contained in documents. Its mobiFLOW software development kit (SDK) is a multi-purpose mobile capture and processing platform that enables capture of any document of any size using a mobile device.

Determine Company Profile

Determine, Inc., (Determine), formerly Selectica, Inc., is a provider of enterprise contract management, supply management and configuration solutions. The Company is engaged in providing software as a service (SaaS) Source to Pay and Enterprise Contract Lifecyclem Management (ECLM) solutions. Its Source to Pay software suite includes strategic sourcing, supplier management, contract management and procure-to-pay applications. The Determine Cloud Platform gives procurement, finance and legal professionals the ability to deliver insights through analysis of their supplier relationships and contractual requirements. The Determine platform is an open technology infrastructure based on smart process application models. In addition to its source to pay and enterprise contract lifecycle management solutions suite, Determine also provides a configuration engine solution. The Company’s Configuration engine consolidates the management and dissemination of complex product information.

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