Guardforce AI (NASDAQ:GFAI) and Digimarc (NASDAQ:DMRC) Head to Head Review

Digimarc (NASDAQ:DMRC) and Guardforce AI (NASDAQ:GFAI) are both small-cap industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Volatility and Risk

Digimarc has a beta of 1.68, indicating that its stock price is 68% more volatile than the S&P 500. Comparatively, Guardforce AI has a beta of 2.5, indicating that its stock price is 150% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Digimarc and Guardforce AI, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Digimarc	1	0	1	0	2.00
Guardforce AI	1	0	1	0	2.00

Digimarc currently has a consensus price target of $20.00, indicating a potential upside of 124.22%. Guardforce AI has a consensus price target of $4.50, indicating a potential upside of 425.64%. Given Guardforce AI’s higher probable upside, analysts clearly believe Guardforce AI is more favorable than Digimarc.

Valuation & Earnings

This table compares Digimarc and Guardforce AI”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Digimarc	$38.42 million	5.05	-$39.01 million	($1.71)	-5.22
Guardforce AI	$36.35 million	0.42	-$5.86 million	N/A	N/A

Guardforce AI has lower revenue, but higher earnings than Digimarc.

Insider and Institutional Ownership

66.9% of Digimarc shares are owned by institutional investors. Comparatively, 2.0% of Guardforce AI shares are owned by institutional investors. 18.7% of Digimarc shares are owned by insiders. Comparatively, 76.7% of Guardforce AI 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.

Profitability

This table compares Digimarc and Guardforce AI’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%
Guardforce AI	N/A	N/A	N/A

Summary

Guardforce AI beats Digimarc on 7 of the 10 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 Guardforce AI

Guardforce AI Co., Limited offers cash solutions and cash handling services in Thailand. The company operates through four segments: Secured Logistics Business, General Security Solutions, Robotics Solution Business, and Information Security Business. Its services include cash-in-transit, vehicles to banks, ATM management, cash center operations, cash processing, coin processing, consolidate cash center, and cheque center services, as well as cash deposit machine solutions, such as cash deposit management and express cash services. The company also sells and rents robots; and sells and installs Rapid7 software, as well as provision of integrated alarm security system installation, PCI ASV scan, and penetration testing services. Its customers include local commercial banks, chain retailers, coin manufacturing mints, and government authorities. The company was founded in 1982 and is based in Singapore.