Digimarc (DMRC) versus Five9 (FIVN) Critical Analysis
Digimarc (NASDAQ: DMRC) and Five9 (NASDAQ:FIVN) are both small-cap technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, earnings and valuation.
Insider & Institutional Ownership
53.4% of Digimarc shares are held by institutional investors. Comparatively, 93.5% of Five9 shares are held by institutional investors. 7.5% of Digimarc shares are held by company insiders. Comparatively, 9.1% of Five9 shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Volatility & Risk
Digimarc has a beta of -1.2, indicating that its stock price is 220% less volatile than the S&P 500. Comparatively, Five9 has a beta of 0.27, indicating that its stock price is 73% less volatile than the S&P 500.
Earnings and Valuation
This table compares Digimarc and Five9’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Digimarc||$21.79 million||19.32||-$21.67 million||($2.25)||-16.51|
|Five9||$162.09 million||8.43||-$11.86 million||($0.14)||-175.42|
Five9 has higher revenue and earnings than Digimarc. Five9 is trading at a lower price-to-earnings ratio than Digimarc, indicating that it is currently the more affordable of the two stocks.
This table compares Digimarc and Five9’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations and price targets for Digimarc and Five9, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Digimarc presently has a consensus price target of $45.33, indicating a potential upside of 22.03%. Five9 has a consensus price target of $26.17, indicating a potential upside of 6.54%. Given Digimarc’s higher possible upside, equities analysts clearly believe Digimarc is more favorable than Five9.
Five9 beats Digimarc on 10 of the 13 factors compared between the two stocks.
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.
Five9 Inc. (Five9) is a provider of cloud software for contact centers. The Company’s purpose-built Virtual Contact Center (VCC) cloud platform delivers a suite of applications that enable the breadth of contact center-related customer service, sales and marketing functions. The Company’s solution, which consists of its VCC cloud platform and applications, allows simultaneous management and optimization of customer interactions across voice, chat, e-mail, Web, social media and mobile channels, either directly or through its application programming interfaces (APIs). The Company’s VCC cloud platform matches each customer interaction with an appropriate agent resource and delivers relevant customer data to the agent in real-time through integrations with adjacent enterprise applications, such as customer relationship management (CRM) software, to optimize the customer experience and agent productivity.
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