Financial Review: Digimarc (NASDAQ:DMRC) vs. Creative Realities (NASDAQ:CREX)

Creative Realities (NASDAQ:CREXGet Rating) and Digimarc (NASDAQ:DMRCGet Rating) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, valuation, institutional ownership, profitability and analyst recommendations.

Insider and Institutional Ownership

10.9% of Creative Realities shares are held by institutional investors. Comparatively, 48.0% of Digimarc shares are held by institutional investors. 9.7% of Creative Realities shares are held by insiders. Comparatively, 25.2% of Digimarc shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for Creative Realities and Digimarc, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Creative Realities 0 0 0 0 N/A
Digimarc 0 0 0 0 N/A

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Creative Realities $18.44 million 0.69 $230,000.00 $0.02 37.32
Digimarc $26.52 million 18.84 -$34.76 million ($2.11) -13.39

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

Profitability

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

Net Margins Return on Equity Return on Assets
Creative Realities 1.26% 2.54% 1.03%
Digimarc -131.07% -48.11% -40.69%

Volatility & Risk

Creative Realities has a beta of 3.53, indicating that its share price is 253% more volatile than the S&P 500. Comparatively, Digimarc has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500.

Summary

Creative Realities beats Digimarc on 6 of the 10 factors compared between the two stocks.

About Creative Realities (Get Rating)

Creative Realities, Inc., together with its subsidiaries, provides digital marketing technology solutions to retail companies, individual retail brands, enterprises, and other organizations in the United States and Canada. The company's technology and solutions include digital merchandising systems and omni-channel customer engagement systems; interactive digital shopping assistants; advisors and kiosks; and other interactive marketing technologies, such as mobile, social media, point-of-sale transactions, beaconing, and Web-based media that enables its customers to engage with their consumers. It also provides consulting, experience design, content development and production, software development, engineering, implementation, and field services; software licenses; and maintenance and support services related to its software, managed systems, and solutions. The company sells its solutions to the automotive, apparel and accessories, banking, baby/children, beauty, CPG, department stores, digital out-of-home, electronics, fashion, fitness, foodservice/quick service restaurant, financial services, gaming, luxury, mass merchants, mobile operators, and pharmacy retail industries. Creative Realities, Inc. is headquartered in Louisville, Kentucky. Creative Realities, Inc. is a subsidiary of Slipstream Communications, LLC.

About Digimarc (Get Rating)

Digimarc Corporation provides automatic identification solutions to commercial and government customers in the United States and internationally. The company offers Digimarc watermarks, a data carrier that provides a digital identity to media objects; Digimarc Discover, a software for computing devices and network interfaces that recognize and decode indicia of the identity of media; and Digimarc Verify, a suite of software tools used to inspect and verify that the identification and discovery of media. Its solutions are used in various application solutions, such as product authentication of physical products; sorting of consumer-packaged goods in recycling streams; track and trace of products within the supply chain; quality control in manufacturing processes; inventory management and planogram compliance; retail point of sale transaction processing; piracy deterrence of digital media objects; content identification and media management; and enhanced services in support of mobile commerce. The company offers its solutions through its sales personnel and business partners. Digimarc Corporation was incorporated in 2008 and is based in Beaverton, Oregon.

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