Digimarc (NASDAQ:DMRC – Get Free Report) and Cycurion (NASDAQ:CYCU – Get Free Report) are both small-cap industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, dividends, institutional ownership, analyst recommendations and earnings.
Profitability
This table compares Digimarc and Cycurion’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Digimarc | -110.92% | -55.40% | -43.81% |
| Cycurion | -112.73% | -186.09% | -62.96% |
Valuation and Earnings
This table compares Digimarc and Cycurion”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Digimarc | $33.66 million | 5.20 | -$39.01 million | ($1.71) | -4.71 |
| Cycurion | $17.77 million | 0.70 | $1.23 million | ($23.52) | -0.16 |
Cycurion has lower revenue, but higher earnings than Digimarc. Digimarc is trading at a lower price-to-earnings ratio than Cycurion, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Digimarc has a beta of 1.79, indicating that its stock price is 79% more volatile than the S&P 500. Comparatively, Cycurion has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and price targets for Digimarc and Cycurion, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Digimarc | 1 | 0 | 1 | 0 | 2.00 |
| Cycurion | 1 | 0 | 0 | 0 | 1.00 |
Digimarc presently has a consensus target price of $20.00, suggesting a potential upside of 148.45%. Given Digimarc’s stronger consensus rating and higher possible upside, equities analysts clearly believe Digimarc is more favorable than Cycurion.
Insider & Institutional Ownership
66.8% of Digimarc shares are owned by institutional investors. Comparatively, 6.6% of Cycurion shares are owned by institutional investors. 19.3% of Digimarc shares are owned by company insiders. Comparatively, 14.8% of Cycurion shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Summary
Digimarc beats Cycurion on 12 of the 14 factors compared between the two stocks.
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.
About Cycurion
Cycurion is a global leading provider of Network Communications and Information Technology Security Solutions. Our mission is to develop and deliver world-class, cutting-edge solutions for our clients, regardless of size or complication, expressly optimizing your IT environment to meet the business need and to keep projects on track and on budget.
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