Critical Comparison: Vuzix (NASDAQ:VUZI) and Datatrak International (OTCMKTS:DTRK)

Vuzix (NASDAQ:VUZI) and Datatrak International (OTCMKTS:DTRK) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, valuation, profitability and risk.

Profitability

This table compares Vuzix and Datatrak International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vuzix	-702.71%	-117.63%	-96.58%
Datatrak International	N/A	N/A	N/A

Institutional and Insider Ownership

35.9% of Vuzix shares are owned by institutional investors. 8.3% of Vuzix shares are owned by company insiders. Comparatively, 8.0% of Datatrak International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

Vuzix has a beta of 1.75, suggesting that its share price is 75% more volatile than the S&P 500. Comparatively, Datatrak International has a beta of 5.31, suggesting that its share price is 431% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Vuzix and Datatrak International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vuzix	1	0	1	0	2.00
Datatrak International	0	0	0	0	0.00

Earnings and Valuation

This table compares Vuzix and Datatrak International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vuzix	$5.76 million	40.48	-$73.54 million	($0.46)	-6.33
Datatrak International	$6.68 million	1.28	$11.43 million	($0.10)	-3.00

Datatrak International has higher revenue and earnings than Vuzix. Vuzix is trading at a lower price-to-earnings ratio than Datatrak International, indicating that it is currently the more affordable of the two stocks.

Summary

Datatrak International beats Vuzix on 8 of the 13 factors compared between the two stocks.

About Vuzix

Vuzix Corporation designs, manufactures, and markets smart glasses and augmented reality (AR) technologies and products for the enterprise, medical, defense, and consumer markets. The company’s products include head-mounted smart personal display and wearable computing devices that offer users a portable viewing experience, provide solutions for mobility, wearable displays, and augmented reality, as well as original equipment manufacturer waveguide optical components and display engines. It also provides certified ERP SaaS logistics solution to support hand-held mobile phones and scanners used in logistics, warehousing, and manufacturing applications. It holds approximately 375 patents and patents pending and various IP licenses in the fields of optics, head-mounted displays, and augmented reality Video Eyewear field. It sells its products through resellers, distributors, direct to commercial customers, and online stores, as well as various Vuzix operated web stores in North America, Europe, the Asia-Pacific, and internationally. The company was formerly known as Icuiti Corporation and changed its name to Vuzix Corporation in September 2007. Vuzix Corporation was incorporated in 1997 and is headquartered in West Henrietta, New York.

About Datatrak International

DATATRAK International, Inc., a technology and services company, provides unified clinical solutions and related services for the clinical trials industry. The company offers DATATRAK ONE Unified Experience, a clinical enterprise solution that allows clinical users and service providers to design, deliver, and manage clinical trials. Its products include UX CTMS 360 for planning and managing trials; UX Trial to streamline design-to-deployment process using a tool; UX EDC & Medical Coding for capturing and delivering data; UX Randomization and Trial Supply Management to randomize patients and automate supply; UX Patient Data Capture; UX Safety; and UX Training to train users and track certificates. The company also provides DATATRAK Clinical Consulting Services, such as training, support, learning center, Software as a Service hosting, standards, and trial design services. It serves contract research organizations, pharma and biotech companies, and clinical trial device companies. DATATRAK International, Inc. was founded in 1991 and is headquartered in Mayfield Heights, Ohio.