Head-To-Head Comparison: Digimarc (NASDAQ:DMRC) vs. Data443 Risk Mitigation (OTCMKTS:ATDS)

Data443 Risk Mitigation (OTCMKTS:ATDS) and Digimarc (NASDAQ:DMRC) are both small-cap industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, valuation, analyst recommendations and dividends.

Risk and Volatility

Data443 Risk Mitigation has a beta of 49.35, meaning that its stock price is 4,835% more volatile than the S&P 500. Comparatively, Digimarc has a beta of 1.67, meaning that its stock price is 67% more volatile than the S&P 500.

Earnings and Valuation

This table compares Data443 Risk Mitigation and Digimarc”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Data443 Risk Mitigation	$4.87 million	0.04	-$6.09 million	($1.00)	0.00
Digimarc	$38.42 million	3.79	-$39.01 million	($1.71)	-3.92

Data443 Risk Mitigation has higher earnings, but lower revenue than Digimarc. Digimarc is trading at a lower price-to-earnings ratio than Data443 Risk Mitigation, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings for Data443 Risk Mitigation and Digimarc, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Data443 Risk Mitigation	0	0	0	0	0.00
Digimarc	1	0	1	0	2.00

Digimarc has a consensus price target of $20.00, indicating a potential upside of 198.51%. Given Digimarc’s stronger consensus rating and higher possible upside, analysts plainly believe Digimarc is more favorable than Data443 Risk Mitigation.

Insider and Institutional Ownership

66.9% of Digimarc shares are held by institutional investors. 36.4% of Data443 Risk Mitigation shares are held by insiders. Comparatively, 18.7% 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.

Profitability

This table compares Data443 Risk Mitigation and Digimarc’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Data443 Risk Mitigation	-71.49%	N/A	-57.70%
Digimarc	-109.17%	-50.08%	-38.57%

About Data443 Risk Mitigation

Data443 Risk Mitigation, Inc. provides data security and privacy management solutions in the United States. The company offers Cyren Threat Intelligence Service that provides security, response, software, and services; Cyren Inbox Security for Microsoft 365, which prevents user access to malicious links and attachments; Ransomware Recovery Manager to recover a workstation upon infection to the last known business-operable state; Data Identification Manager, a data classification and governance technology; Data Archive Manager for enterprise data retention management and archiving; and Sensitive Content Manager, a cloud-based platform for managing, protecting, and distributing digital content. It also provides Data Placement Manager, a data transport, transformation, and delivery product; Access Control Manager that enables access controls across various platforms at scale for internal client systems and commercial public cloud platforms; Blockchain Protection Manager, which protects blockchain transactions from inadvertent disclosure and data leaks; and Global Privacy Manager, a privacy compliance and consumer loss mitigation platform. In addition, the company offers IntellyWP to enhance the user experience for content management platform; Chat History Scanner, which scans chat messages for compliance, security, personally identifiable information, personal information, payment card industry information, and custom keywords; and GDPR Framework, CCPA Framework, and LGPD Framework WordPress Plugins that enables organizations’ compliance on privacy rules and regulations. It serves the government, financial services, healthcare, manufacturing, retail, technology, and telecommunications sectors. The company was formerly known as LandStar, Inc. and changed its name to Data443 Risk Mitigation, Inc. in October 2019. Data443 Risk Mitigation, Inc. was founded in 1998 and is headquartered in Research Triangle Park, North Carolina.

About Digimarc

Digimarc Corporation, together with its subsidiaries, provides automatic identification solutions to commercial and government customers in the United States and internationally. The company offers Digimarc Validate protects, a cloud-based record of product authentication information; Digimarc Engage, an interactive communications channel connecting brands and consumers; and Digimarc Recycle. Its solutions are used in various application solutions, such as sorting of consumer-packaged goods in recycling streams. The company offers its solutions through its sales personnel and business partners. Digimarc Corporation was incorporated in 2008 and is based in Beaverton, Oregon.