Contrasting Symantec (SYMC) & Digimarc (DMRC)

Symantec (NASDAQ: SYMC) and Digimarc (NASDAQ:DMRC) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, dividends, earnings and profitability.

Insider & Institutional Ownership

94.9% of Symantec shares are held by institutional investors. Comparatively, 57.5% of Digimarc shares are held by institutional investors. 1.3% of Symantec shares are held by insiders. Comparatively, 7.5% of Digimarc shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Symantec and Digimarc’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Symantec $4.02 billion 4.01 -$106.00 million $1.54 16.82
Digimarc $21.79 million 14.95 -$21.67 million ($2.25) -12.78

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

Profitability

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

Net Margins Return on Equity Return on Assets
Symantec 22.24% 14.26% 3.32%
Digimarc -90.69% -30.98% -29.02%

Dividends

Symantec pays an annual dividend of $0.30 per share and has a dividend yield of 1.2%. Digimarc does not pay a dividend. Symantec pays out 19.5% of its earnings in the form of a dividend.

Volatility & Risk

Symantec has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, Digimarc has a beta of -1.35, meaning that its share price is 235% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Symantec and Digimarc, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Symantec 3 14 8 0 2.20
Digimarc 0 1 3 0 2.75

Symantec currently has a consensus price target of $30.77, suggesting a potential upside of 18.77%. Digimarc has a consensus price target of $45.33, suggesting a potential upside of 57.68%. Given Digimarc’s stronger consensus rating and higher possible upside, analysts plainly believe Digimarc is more favorable than Symantec.

Summary

Symantec beats Digimarc on 9 of the 15 factors compared between the two stocks.

About Symantec

Symantec Corporation is a United States-based cyber security company. The Company offers products under categories, such as threat protection, information protection and cyber security services. Under threat protection, it offers Advanced Threat Protection, Endpoint Protection, Endpoint Protection Cloud, IT Management Suite, Email Security, Cloud, Data Center Security and Cloud Workload Protection products. Under the information protection category, it offers Data Loss Prevention, Encryption, Service, VIP Access Manager, and Data Loss Prevention and CloudSOC products. The Company also offers consulting services, customer success services, cyber security services and education services. Its cyber security services include DeepSight Intelligence software, which provides an analysis of attacks.

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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