Digimarc (NASDAQ:DMRC) vs. TDCX (NYSE:TDCX) Head-To-Head Analysis

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

Profitability

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

Net Margins Return on Equity Return on Assets
Digimarc -184.67% -55.95% -46.66%
TDCX 17.49% 22.08% 17.83%

Analyst Recommendations

This is a breakdown of recent ratings for Digimarc and TDCX, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Digimarc 0 0 0 0 N/A
TDCX 0 0 1 0 3.00

Digimarc currently has a consensus target price of $17.00, indicating a potential downside of 23.87%. TDCX has a consensus target price of $16.50, indicating a potential upside of 56.84%. Given TDCX’s higher probable upside, analysts plainly believe TDCX is more favorable than Digimarc.

Earnings and Valuation

This table compares Digimarc and TDCX’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Digimarc $26.52 million 16.87 -$34.76 million ($3.04) -7.35
TDCX $410.74 million 3.66 $76.82 million $0.57 18.46

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

Insider and Institutional Ownership

65.7% of Digimarc shares are owned by institutional investors. Comparatively, 15.4% of TDCX shares are owned by institutional investors. 23.3% of Digimarc shares are owned by insiders. Comparatively, 85.0% of TDCX shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

TDCX beats Digimarc on 10 of the 12 factors compared between the two stocks.

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.

About TDCX

(Get Rating)

TDCX Inc., together with its subsidiaries, provides outsource contact center services for technology and other blue-chip companies in Singapore, Malaysia, Thailand, the Philippines, Japan, China, Spain, India, Colombia, South Korea, and Romania. It offers digital customer experience solutions, including after-sales service and customer support across various industry verticals, such as travel and hospitality, digital advertising and media, fast-moving consumer goods, technology, financial services, fintech, government and non-governmental organizations, gaming, e-commerce, and education. The company also provides sales and digital marketing services that help its clients to market their products and services to their potential customers in the business-to-consumer and business-to-business markets; and content monitoring and moderation services that create a safe and secure online environment for social media platforms by providing human interaction to content moderation services. In addition, it offers workspaces to its existing clients; and human resource and administration services. The company was formerly known as TDCX Capital Pte Ltd and changed its name to TDCX Inc. in January 2021. TDCX Inc. was founded in 1995 and is headquartered in Singapore. TDCX Inc. operates as a subsidiary of Transformative Investments Pte Ltd.

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