Finjan (NASDAQ: FNJN) and Acacia Research (NASDAQ:ACTG) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, profitability, institutional ownership, analyst recommendations, risk and valuation.
Earnings & Valuation
This table compares Finjan and Acacia Research’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Finjan||$50.48 million||1.58||$22.81 million||$0.35||8.23|
|Acacia Research||$65.40 million||3.06||$22.18 million||$2.97||1.33|
Finjan has higher earnings, but lower revenue than Acacia Research. Acacia Research is trading at a lower price-to-earnings ratio than Finjan, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and price targets for Finjan and Acacia Research, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Finjan presently has a consensus price target of $5.00, suggesting a potential upside of 73.61%. Acacia Research has a consensus price target of $6.50, suggesting a potential upside of 64.56%. Given Finjan’s stronger consensus rating and higher probable upside, research analysts clearly believe Finjan is more favorable than Acacia Research.
Insider & Institutional Ownership
44.1% of Finjan shares are held by institutional investors. Comparatively, 61.7% of Acacia Research shares are held by institutional investors. 9.6% of Finjan shares are held by insiders. Comparatively, 11.0% of Acacia Research shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares Finjan and Acacia Research’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
Finjan has a beta of -0.6, indicating that its share price is 160% less volatile than the S&P 500. Comparatively, Acacia Research has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500.
Acacia Research beats Finjan on 7 of the 13 factors compared between the two stocks.
Finjan Company Profile
Finjan Holdings, Inc., a cybersecurity company, provides intellectual property licensing and enforcement services in the United States and internationally. The company owns a portfolio of patents related to software and hardware technologies that proactively detect malicious code and thereby protects end users from identity and data theft, spyware, malware, phishing, Trojans, and other Web and network threats. Its patented technologies are used in specific cybersecurity technology areas, including endpoint/cloud software, Web gateway/Internet infrastructure, networking equipment markets, and mobile security. The company's technology scans and repels the latest and unknown threats to network, Web, and endpoint devices on a real-time basis. It also develops mobile security applications; invests in cybersecurity technologies and intellectual property; and provides cyber risk and cyber security advisory services provides. Finjan Holdings, Inc. was founded in 1997 and is headquartered in East Palo Alto, California.
Acacia Research Company Profile
Acacia Research Corporation, together with its subsidiaries, invests in, licenses, and enforces patented technologies. It assists patent owners with the prosecution and development of their patent portfolios; protection of their patented inventions from unauthorized use; generation of licensing revenue from users of their patented technologies; and enforcement against unauthorized users of their patented technologies through the filing of patent infringement litigation. The company owns or controls the rights to various patent portfolios, which include U.S. patents and foreign counterparts covering technologies used in a range of industries. It has executed approximately 1,550 license agreements and 193 patent portfolio licensing and enforcement programs. Acacia Research Corporation was founded in 1992 and is headquartered in Newport Beach, California.
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