Quarterhill (OTCMKTS:QTRHF) vs. Joint (OTCMKTS:JYNT) Financial Analysis

Quarterhill (OTCMKTS:QTRHF) and Joint (NASDAQ:JYNT) are both small-cap business services companies, but which is the superior business? We will compare the two companies based on the strength of their institutional ownership, earnings, profitability, analyst recommendations, dividends, valuation and risk.

Profitability

This table compares Quarterhill and Joint’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Quarterhill -11.31% -6.62% -5.54%
Joint 6.57% 104.54% 8.45%

Analyst Recommendations

This is a summary of recent ratings for Quarterhill and Joint, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Quarterhill 0 0 0 0 N/A
Joint 0 0 5 0 3.00

Joint has a consensus target price of $27.00, indicating a potential upside of 65.14%. Given Joint’s higher possible upside, analysts plainly believe Joint is more favorable than Quarterhill.

Earnings & Valuation

This table compares Quarterhill and Joint’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Quarterhill $77.40 million 2.04 -$49.12 million ($0.24) -5.54
Joint $31.79 million 7.13 $250,000.00 $0.04 408.75

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

Institutional & Insider Ownership

10.2% of Quarterhill shares are owned by institutional investors. Comparatively, 67.4% of Joint shares are owned by institutional investors. 6.1% of Joint shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Quarterhill has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500. Comparatively, Joint has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500.

Summary

Joint beats Quarterhill on 12 of the 13 factors compared between the two stocks.

About Quarterhill

Quarterhill Inc. focuses on acquisition and management of technology companies that provides products and services worldwide. Its Licensing segment includes patents relating to 3D television, semiconductor manufacturing and packaging, medical stent, intelligent personal assistant, enhanced image processing, streaming video, non-volatile flash and other memory, semiconductor clocking, LED lighting, and various other technologies; automotive headlight assemblies, phased loop semiconductor licensing, microcontrollers applicable to safety-critical aerospace, computer gaming, CMOS image sensors, building automation, and smart meter monitoring; and medical, industrial, and automotive applications. The company's Intelligent Systems segment provides integrated systems and solutions, such as automated truck weigh stations; toll road systems and equipment; traffic management and safety systems; VectorSense, a tire sensor suite; Vehicle Information-In-Motion, a traffic intelligence system; integrated traffic control systems; permanent and portable slow speed weigh-in-motion systems; portable wheel load scales; traffic data collection products; vehicle and axle detection equipment; and automated vehicle identification, and other hardware and software products for the intelligent transportation systems industry. This segment serves through direct salespeople, distributors, agents, other contractors, and systems integrators. Its Enterprise Software segment provides enterprise asset management software solutions to asset intensive industries through its salesforce over the Internet. Its offerings include WorkAlign, a product suite, which consists of integrated products, such as scheduler, IIoT, mobile for EAM, maintenance budgeting, warranty tracker, and analytics; and consulting services. The company was formerly known as Wi-LAN Inc. and changed its name to Quarterhill Inc. in June 2017. Quarterhill Inc. was incorporated in 1992 and is headquartered in Kitchener, Canada.

About Joint

The Joint Corp. develops, owns, operates, supports, and manages chiropractic clinics. The company operates through two segments, Corporate Clinics and Franchise Operations. It operates through direct ownership, management arrangements, franchising, and the sale of regional developer rights. As of March 07, 2019, the company operated 450 clinics in the United States. The company was founded in 2010 and is headquartered in Scottsdale, Arizona.

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