Analyzing DatChat (NASDAQ:DATS) and TechTarget (NASDAQ:TTGT)

TechTarget (NASDAQ:TTGT – Get Rating) and DatChat (NASDAQ:DATS – Get Rating) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Volatility & Risk

TechTarget has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, DatChat has a beta of 1.91, meaning that its share price is 91% more volatile than the S&P 500.

Valuation and Earnings

This table compares TechTarget and DatChat’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TechTarget	$297.49 million	3.54	$41.61 million	$1.30	28.25
DatChat	N/A	N/A	-$10.83 million	N/A	N/A

TechTarget has higher revenue and earnings than DatChat.

Profitability

This table compares TechTarget and DatChat’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TechTarget	13.99%	23.59%	6.96%
DatChat	-34,104.96%	-90.93%	-87.86%

Analyst Ratings

This is a breakdown of current ratings and target prices for TechTarget and DatChat, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TechTarget	1	3	3	0	2.29
DatChat	0	0	0	0	N/A

TechTarget currently has a consensus price target of $48.63, suggesting a potential upside of 32.42%. Given TechTarget’s higher possible upside, analysts clearly believe TechTarget is more favorable than DatChat.

Insider & Institutional Ownership

99.6% of TechTarget shares are owned by institutional investors. Comparatively, 3.5% of DatChat shares are owned by institutional investors. 8.9% of TechTarget shares are owned by insiders. Comparatively, 13.9% of DatChat shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

TechTarget beats DatChat on 8 of the 10 factors compared between the two stocks.

About TechTarget

(Get Rating)

TechTarget, Inc. engages in the provision of data and analytics and software solutions for purchase intent-driven marketing and sales data which delivers business impact for business-to-business companies. It operates through the North America and International geographical segments. Its solutions include tech marketing, ABM, tech sales, and intent-driven services. The company was founded by Don Hawk and Greg Strakosch on September 14, 1999 and is headquartered in Newton, MA.

About DatChat

(Get Rating)

DatChat, Inc. a communication software company, develops mobile messaging application. The company offers DatChat Messenger & Private Social Network, a mobile application that gives users the ability to communicate with privacy and protection. It also develops a blockchain-based decentralized communications platform that allows consumers and businesses to connect directly with each other. The company was formerly known as Yssup, Inc. and changed its name to DatChat, Inc. in September 2016. DatChat, Inc. was incorporated in 2014 and is based in New Brunswick, New Jersey.