Analyzing Digimarc (NASDAQ:DMRC) & Waystar (NASDAQ:WAY)

Posted by John Perry on Nov 28th, 2024

Digimarc (NASDAQ:DMRC – Get Free Report) and Waystar (NASDAQ:WAY – Get Free Report) are both industrial products companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Insider & Institutional Ownership

66.9% of Digimarc shares are owned by institutional investors. 19.3% of Digimarc shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for Digimarc and Waystar, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Digimarc	0	1	1	0	2.50
Waystar	0	0	10	1	3.09

Digimarc currently has a consensus price target of $34.00, suggesting a potential upside of 0.47%. Waystar has a consensus price target of $32.90, suggesting a potential upside of 7.55%. Given Waystar’s stronger consensus rating and higher probable upside, analysts clearly believe Waystar is more favorable than Digimarc.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Digimarc	$34.85 million	20.80	-$45.96 million	($1.95)	-17.35
Waystar	$791.01 million	6.66	-$51.33 million	N/A	N/A

Digimarc has higher earnings, but lower revenue than Waystar.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Digimarc	-104.84%	-41.67%	-34.11%
Waystar	N/A	N/A	N/A

Summary

Waystar beats Digimarc on 8 of the 12 factors compared between the two stocks.

About Digimarc

(Get Free Report)

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.

About Waystar