Contrasting Digimarc (NASDAQ:DMRC) & Sharing Economy International (OTCMKTS:SEII)

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

Analyst Recommendations

This is a summary of recent ratings and price targets for Sharing Economy International and Digimarc, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sharing Economy International	0	0	0	0	0.00
Digimarc	0	1	1	0	2.50

Digimarc has a consensus price target of $29.00, indicating a potential upside of 151.30%. Given Digimarc’s stronger consensus rating and higher possible upside, analysts plainly believe Digimarc is more favorable than Sharing Economy International.

Profitability

This table compares Sharing Economy International and Digimarc’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sharing Economy International	N/A	N/A	N/A
Digimarc	-104.84%	-41.67%	-34.11%

Institutional & Insider Ownership

0.6% of Sharing Economy International shares are owned by institutional investors. Comparatively, 66.8% of Digimarc shares are owned by institutional investors. 0.1% of Sharing Economy International shares are owned by insiders. Comparatively, 19.3% of Digimarc shares are owned 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 & Valuation

This table compares Sharing Economy International and Digimarc”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sharing Economy International	$320,000.00	0.00	-$4.15 million	N/A	N/A
Digimarc	$38.42 million	6.47	-$45.96 million	($1.83)	-6.31

Sharing Economy International has higher earnings, but lower revenue than Digimarc.

Volatility & Risk

Sharing Economy International has a beta of -2.89, meaning that its share price is 389% less volatile than the S&P 500. Comparatively, Digimarc has a beta of 1.53, meaning that its share price is 53% more volatile than the S&P 500.

Summary

Digimarc beats Sharing Economy International on 7 of the 11 factors compared between the two stocks.

About Sharing Economy International

Sharing Economy International Inc. focuses on the development of sharing economy platforms and related rental businesses. The company operates rental stations that offer power banks for mobile charging on-demand and other items; and provision of consulting and office support services. It also engages in the real estate and property management businesses; provision of management services; online media and advertising business; and production of films. In addition, the company develops and operates a sharing economy mobile platform for courier services; develops an interactive virtual tour of a physical space using a mobile phone camera; operates online platforms; and operates a bike sharing mobile app, as well as provides licensing services. Sharing Economy International Inc. was formerly known as Cleantech Solutions International, Inc. and changed its name to Sharing Economy International Inc. in January 2018. The company was incorporated in 1987 and is based in Tuen Mun, Hong Kong.

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.