TechTarget (NASDAQ:TTGT) and CAPITA Grp/ADR (OTCMKTS:CTAGY) 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 profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.
Earnings and Valuation
This table compares TechTarget and CAPITA Grp/ADR’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|TechTarget||$108.56 million||5.38||$6.80 million||$0.24||88.25|
|CAPITA Grp/ADR||$5.46 billion||0.20||-$150.91 million||$2.35||2.81|
TechTarget has higher earnings, but lower revenue than CAPITA Grp/ADR. CAPITA Grp/ADR is trading at a lower price-to-earnings ratio than TechTarget, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and recommmendations for TechTarget and CAPITA Grp/ADR, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
TechTarget presently has a consensus target price of $23.80, indicating a potential upside of 12.37%. Given TechTarget’s higher possible upside, analysts plainly believe TechTarget is more favorable than CAPITA Grp/ADR.
This table compares TechTarget and CAPITA Grp/ADR’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
TechTarget has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500. Comparatively, CAPITA Grp/ADR has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500.
Insider and Institutional Ownership
59.1% of TechTarget shares are owned by institutional investors. 27.1% of TechTarget shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
CAPITA Grp/ADR pays an annual dividend of $0.55 per share and has a dividend yield of 8.3%. TechTarget does not pay a dividend. CAPITA Grp/ADR pays out 23.4% of its earnings in the form of a dividend.
TechTarget beats CAPITA Grp/ADR on 12 of the 16 factors compared between the two stocks.
TechTarget, Inc. provides specialized online content for buyers of enterprise information technology (IT) products and services in the United States, the United Kingdom, and internationally. It also provides purchase-intent marketing and sales services for enterprise technology vendors; and customized marketing programs that integrate demand generation and brand marketing, as well as advertising techniques, which enable IT vendors to identify, reach, and influence corporate IT decision makers who are researching specific IT purchases. The company offers online services, including IT Deal Alert, core online, demand solutions, brand solutions, and custom content creation. It also operates an integrated content platform that consists of a network of approximately 140 Websites that focus on a specific IT sector, such as storage, security, networking, or business applications. In addition, the company enables registered members to conduct their pre-purchase research by accessing vendor supplied content through a network of Websites. TechTarget, Inc. was founded in 1999 and is headquartered in Newton, Massachusetts.
About CAPITA Grp/ADR
Capita plc provides customer management, administration, and professional support services to clients in the private and public sectors. The company offers business process management, business transformation, corporate and administration, customer management, digital and software solution, financial, HR and recruitment, information technology, legal, procurement, property and infrastructure, start-up development, and travel and event services. Capita plc provides its services to banking and financial services, insurance, life and pensions, retail, telecoms and media, transport, utilities, central and local government, defense, education, emergency services, health, police and justice, and science sectors. The company operates in the United Kingdom, Ireland, the European Union, the Channel Islands, India, South Africa, North America, and the Middle East. The company was formerly known as The Capita Group plc and changed its name to Capita plc in January 2012. Capita plc was founded in 1984 and is headquartered in London, the United Kingdom.
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