Digimarc (NASDAQ: DMRC) and Mulesoft (NYSE:MULE) are both industrial products 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

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This is a summary of current ratings and price targets for Digimarc and Mulesoft, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Digimarc 0 1 4 0 2.80
Mulesoft 0 2 9 0 2.82

Digimarc presently has a consensus target price of $43.75, suggesting a potential upside of 51.12%. Mulesoft has a consensus target price of $31.33, suggesting a potential downside of 6.22%. Given Digimarc’s higher possible upside, equities research analysts clearly believe Digimarc is more favorable than Mulesoft.

Profitability

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

Net Margins Return on Equity Return on Assets
Digimarc -102.21% -33.46% -31.35%
Mulesoft -26.98% -32.10% -17.82%

Earnings and Valuation

This table compares Digimarc and Mulesoft’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Digimarc $25.21 million 13.62 -$25.77 million ($2.44) -11.86
Mulesoft $296.46 million 14.82 -$79.98 million ($0.80) -41.76

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

Insider & Institutional Ownership

56.8% of Digimarc shares are held by institutional investors. Comparatively, 51.1% of Mulesoft shares are held by institutional investors. 7.5% of Digimarc 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

Mulesoft beats Digimarc on 8 of the 13 factors compared between the two stocks.

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 Mulesoft

MuleSoft, Inc. is engaged in providing a software platform that connects a range of technologies. The Company enables organizations to manage and secure the flow of data between all systems in the enterprise. The Company offers organizations to create agile infrastructures. The Company has developed Anypoint Platform. The Company’s customers use its Anypoint Platform to connect their applications, data, and devices into an application network where systems are pluggable instead of glued together with custom integration code. The application network enables a self-serve infrastructure through discoverable building blocks, or nodes, that can be used and reused to rapidly compose applications. With an application network built with Anypoint Platform, organizations can transform into composable enterprises.

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