Digimarc (NASDAQ: DMRC) and GoDaddy (NYSE:GDDY) are both industrial products companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, dividends, risk and earnings.
Insider and Institutional Ownership
56.8% of Digimarc shares are held by institutional investors. Comparatively, 86.9% of GoDaddy shares are held by institutional investors. 7.5% of Digimarc shares are held by insiders. Comparatively, 22.7% of GoDaddy shares are held by 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.
Earnings and Valuation
This table compares Digimarc and GoDaddy’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Digimarc||$25.21 million||12.37||-$25.77 million||($2.44)||-10.78|
|GoDaddy||$2.23 billion||4.64||$136.40 million||$0.42||146.69|
GoDaddy has higher revenue and earnings than Digimarc. Digimarc is trading at a lower price-to-earnings ratio than GoDaddy, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Digimarc has a beta of -0.99, indicating that its share price is 199% less volatile than the S&P 500. Comparatively, GoDaddy has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500.
This is a breakdown of current ratings and price targets for Digimarc and GoDaddy, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Digimarc presently has a consensus target price of $43.75, suggesting a potential upside of 66.29%. GoDaddy has a consensus target price of $61.63, suggesting a potential upside of 0.02%. Given Digimarc’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Digimarc is more favorable than GoDaddy.
This table compares Digimarc and GoDaddy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
GoDaddy beats Digimarc on 11 of the 14 factors compared between the two stocks.
Digimarc Corporation provides media identification and management solutions to commercial entities and government customers in the United States and internationally. The company offers Digimarc Intuitive Computing Platform, a comprehensive set of technologies for identifying, discovering, and interacting with digitally-enhanced media, which includes Digimarc Barcode, a method for imperceptibly enhancing packaging, print, images, thermal labels, audio, and other objects with data that is detected by enabled devices, such as smart phones, computers, barcode scanners, and machine-vision equipment. It also provides Digimarc Discover software that enables an ecosystem of connected devices to identify content or materials and deliver information. The company's solutions identify, track, manage, and protect content; and enable new consumer applications to access networks and information from personal computers and mobile devices. Its solutions are used in various media identification and management products and solutions, such as counterfeiting and piracy deterrence; online e-publication piracy protection; content identification and media management; authentication and monitoring; retail point of sale transaction processing; linking to networks and providing access to information; and enhanced services in support of mobile commerce. The company provides its solutions directly and through its business partners. Digimarc Corporation was founded in 2008 and is based in Beaverton, Oregon.
GoDaddy Inc. designs and develops cloud-based technology products for small businesses, Web design professionals, and individuals in the United States and internationally. It provides domain name registration product that enables to engage customers at the initial stage of establishing a digital identity; hosting products, such as shared Website hosting, Website hosting on virtual private servers and virtual dedicated servers, managed hosting, and security. The company also offers presence products, including GoCentral, an online tool that enables customers to build Websites and online stores; and a range of marketing tools designed to help businesses acquire and engage customers, as well as search engine optimization that helps customers get their Websites found on search sites. In addition, the company offers business application products, including Microsoft Office 365, email accounts, email marketing, and telephony services. GoDaddy Inc. was incorporated in 2014 and is headquartered in Scottsdale, Arizona.
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