Park City Group (NASDAQ: PCYG) and Digital Turbine (NASDAQ:APPS) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Analyst Ratings

This is a summary of current ratings and price targets for Park City Group and Digital Turbine, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Park City Group 0 0 2 0 3.00
Digital Turbine 0 0 4 0 3.00

Park City Group presently has a consensus target price of $16.50, suggesting a potential upside of 90.75%. Digital Turbine has a consensus target price of $1.75, suggesting a potential downside of 11.62%. Given Park City Group’s higher possible upside, equities research analysts clearly believe Park City Group is more favorable than Digital Turbine.

Profitability

This table compares Park City Group and Digital Turbine’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Park City Group 17.98% 10.33% 8.19%
Digital Turbine -20.41% -23.85% -13.37%

Risk and Volatility

Park City Group has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500. Comparatively, Digital Turbine has a beta of 1.52, suggesting that its share price is 52% more volatile than the S&P 500.

Earnings and Valuation

This table compares Park City Group and Digital Turbine’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Park City Group $18.94 million 8.88 $3.77 million $0.13 66.54
Digital Turbine $91.55 million 1.56 -$24.26 million ($0.30) -6.60

Park City Group has higher earnings, but lower revenue than Digital Turbine. Digital Turbine is trading at a lower price-to-earnings ratio than Park City Group, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

31.2% of Park City Group shares are held by institutional investors. Comparatively, 20.8% of Digital Turbine shares are held by institutional investors. 37.4% of Park City Group shares are held by company insiders. Comparatively, 4.8% of Digital Turbine shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Park City Group beats Digital Turbine on 10 of the 13 factors compared between the two stocks.

About Park City Group

Park City Group, Inc. is a software-as-a-service (SaaS) provider. The Company delivers its services through software products designed, developed, marketed and supported by the Company. The Company also has a Professional Services business, which conducts customization, implementation and training. The Company has approximately two services groups, such as The Business Analytics Group and The Professional Services Group. The Business Analytics Group offers business-consulting services to suppliers and retailers in the grocery, convenience store and specialty retail industries. The Professional Services Group provides consulting services. The Company’s solutions include Advanced Commerce and Supply-Chain Solutions, and Food Safety Solutions. The Company’s primary advanced commerce and supply-chain solutions include Scan Based Trading, ScoreTracker, Vendor Managed Inventory, Store Level Replenishment, Enterprise Supply Chain Planning, Fresh Market Manager and ActionManager.

About Digital Turbine

Digital Turbine, Inc. is engaged in delivering end-to-end products and solutions for mobile operators, application advertisers, device original equipment manufacturers (OEMs) and other third parties to enable them to monetize mobile content. The Company operates its business in two operating segments: Advertising and Content. The Advertising segment consists of two businesses: Operator and OEM (O&O) and Advertiser and Publisher (A&P). The O&O business is an advertiser solution for carrier and OEM inventory consisting of services, such as Ignite, a mobile device management platform and Discover, an intelligent application discovery platform. Its A&P business is a mobile user acquisition network across the world consisting of services, such as syndicated network and real time bidding (RTB). The Content segment consists of services, including Marketplace, which is an application and content store, and Pay, which is a content management and mobile payment solution.

Receive News & Ratings for Park City Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Park City Group and related companies with MarketBeat.com's FREE daily email newsletter.