Digimarc (NASDAQ: DMRC) and Yodlee (NASDAQ:YDLE) are both industrial products companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, analyst recommendations, valuation, risk and profitability.

Institutional & Insider Ownership

56.0% of Digimarc shares are held by institutional investors. 7.5% of Digimarc shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Digimarc and Yodlee’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Digimarc $21.79 million 18.82 -$21.67 million ($2.25) -16.09
Yodlee N/A N/A N/A ($0.45) N/A

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

Profitability

This table compares Digimarc and Yodlee’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Digimarc -90.69% -30.98% -29.02%
Yodlee -11.25% -15.54% -11.53%

Analyst Recommendations

This is a breakdown of current recommendations for Digimarc and Yodlee, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Digimarc 0 1 3 0 2.75
Yodlee 0 0 0 0 N/A

Digimarc presently has a consensus price target of $45.33, suggesting a potential upside of 25.23%.

About Digimarc

Digimarc Corporation (Digimarc) enables governments and enterprises to give digital identities to media and objects that computers can sense and recognize. The Company’s Digimarc Discover, Digimarc Barcode and Intuitive Computing Platform are designed to optimize the identification of consumer brand impressions, facilitating mobile-centric shopping. The Company operates through media management solutions segment. The Company’s platform includes means to embed Digimarc Barcodes, invisible and inaudible barcode-like information that is recognizable by smartphones, industrial scanners, and other computer interfaces into various forms of media content, including consumer product packaging. Its Digimarc Barcodes has a range of applications, including facilitating scanning of products at retail checkout, as well as engagement with smartphone-equipped consumers. The Digimarc Barcode allows automatic identification of media without visible computer codes, such as traditional barcodes.

About Yodlee

Yodlee, Inc. is a technology and applications platform for digital financial services in the cloud. The Company refers to its platform as the Yodlee Financial Cloud. It provides subscription services on a business-to-business-to-consumer (B2B2C) basis to financial services clients, whereby its customers offer solutions based on the Company’s platform to their end users. On a business-to-business (B2B) basis, the Company delivers an open platform to customers and third-party developers through its application programming interfaces’ (API’s). The Company also provides transaction-level data for data solutions and market research services. It serves two customer groups or channels, financial institutions and Yodlee Interactive customers. The Company provides access to its solutions across multiple channels, including Web, tablet and mobile.

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