Head to Head Analysis: Digimarc (NASDAQ:DMRC) vs. Assa Abloy (OTCMKTS:ASAZY)

Digimarc (NASDAQ:DMRC) and Assa Abloy (OTCMKTS:ASAZY) are both industrials companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Digimarc	-109.17%	-50.08%	-38.57%
Assa Abloy	9.57%	14.24%	6.70%

Valuation & Earnings

This table compares Digimarc and Assa Abloy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Digimarc	$38.42 million	3.89	-$39.01 million	($1.71)	-4.02
Assa Abloy	$14.20 billion	N/A	$1.48 billion	$0.71	27.21

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

Insider & Institutional Ownership

66.9% of Digimarc shares are owned by institutional investors. 18.7% of Digimarc 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.

Volatility and Risk

Digimarc has a beta of 1.68, suggesting that its share price is 68% more volatile than the S&P 500. Comparatively, Assa Abloy has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Digimarc and Assa Abloy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Digimarc	1	0	1	0	2.00
Assa Abloy	0	3	1	0	2.25

Digimarc currently has a consensus target price of $20.00, indicating a potential upside of 191.12%. Given Digimarc’s higher probable upside, research analysts plainly believe Digimarc is more favorable than Assa Abloy.

Summary

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

About Digimarc

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 Assa Abloy

ASSA ABLOY AB (publ) provides door opening and access products, solutions, and services for the institutional, commercial, and residential markets in Europe, the Middle East, India, Africa, North and South America, Asia, and Oceania. The company provides digital access solutions, such as electronic access control ecosystem, wireless solutions, electronic key solutions, standalone access solutions, and wired solutions; swing, revolving, and sliding doors; mechanical products, including hinges, lever handles, mortise lockcases, euro profile cylinders, panic exit devices, door closers, floor spring, and general hardware; and doors. It offers Openings Studio, a building information modeling software ecosystem is collaboration tool for designing, documenting, and managing openings. The company provides its products primarily under the ASSA ABLOY, Yale, and HID brands. It sells its products through distributors and wholesalers. The company serves aviation, education, distribution and logistics, entertainment and public facility, finance and banking, government and military, healthcare, hospitality, manufacturing, mining, office and enterprise, homes and residence, retail, shipyards, and transportation industries. ASSA ABLOY AB (publ) was incorporated in 1954 and is based in Stockholm, Sweden.