Digimarc (NASDAQ:DMRC) vs. MSA Safety Incorporporated (NYSE:MSA) Head-To-Head Comparison

Digimarc (NASDAQ:DMRC) and MSA Safety Incorporporated (NYSE:MSA) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, dividends and profitability.

Analyst Ratings

This is a summary of recent recommendations for Digimarc and MSA Safety Incorporporated, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Digimarc	1	0	1	0	2.00
MSA Safety Incorporporated	0	3	3	0	2.50

Digimarc currently has a consensus price target of $20.00, indicating a potential upside of 203.03%. MSA Safety Incorporporated has a consensus price target of $189.20, indicating a potential upside of 23.66%. Given Digimarc’s higher probable upside, equities analysts plainly believe Digimarc is more favorable than MSA Safety Incorporporated.

Risk and Volatility

Digimarc has a beta of 1.79, meaning that its share price is 79% more volatile than the S&P 500. Comparatively, MSA Safety Incorporporated has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500.

Dividends

Digimarc pays an annual dividend of $0.44 per share and has a dividend yield of 6.7%. MSA Safety Incorporporated pays an annual dividend of $2.12 per share and has a dividend yield of 1.4%. Digimarc pays out -25.7% of its earnings in the form of a dividend. MSA Safety Incorporporated pays out 29.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. MSA Safety Incorporporated has raised its dividend for 56 consecutive years. Digimarc is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

66.8% of Digimarc shares are held by institutional investors. Comparatively, 92.5% of MSA Safety Incorporporated shares are held by institutional investors. 19.3% of Digimarc shares are held by insiders. Comparatively, 0.7% of MSA Safety Incorporporated shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Digimarc and MSA Safety Incorporporated’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Digimarc	-110.92%	-55.40%	-43.81%
MSA Safety Incorporporated	15.02%	25.23%	12.89%

Valuation & Earnings

This table compares Digimarc and MSA Safety Incorporporated”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Digimarc	$33.66 million	4.27	-$39.01 million	($1.71)	-3.86
MSA Safety Incorporporated	$1.86 billion	3.21	$284.97 million	$7.09	21.58

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

Summary

MSA Safety Incorporporated beats Digimarc on 11 of the 17 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 MSA Safety Incorporporated

MSA Safety Incorporated develops, manufactures, and supplies safety products and technology solutions that protect people and facility infrastructures in the fire service, energy, utility, construction, and industrial manufacturing applications, as well as heating, ventilation, air conditioning, and refrigeration industries worldwide. The company's core product offerings include fixed gas and flame detection systems, such as gas detection monitoring systems, and flame detectors and open-path infrared gas detectors; breathing apparatus products, including self-contained breathing apparatus; hand-held portable gas detection instruments to detect the presence or absence of various gases in the air; industrial head protection products; firefighter helmets and protective apparel; and fall protection equipment, such as confined space equipment, harnesses, lanyards, and self-retracting lifelines, as well as engineered systems. In addition, the company offers air-purifying respirators, eye and face protection products, ballistic helmets, and gas masks. It serves distributors and end-users through indirect and direct sales channels. The company offers its products under the V-Gard, Cairns, and Gallet brand names. MSA Safety Incorporated was founded in 1914 and is based in Cranberry Township, Pennsylvania.