Analyzing G4S (OTCMKTS:GFSZY) and Digimarc (NASDAQ:DMRC)

G4S (OTCMKTS:GFSZY) and Digimarc (NASDAQ:DMRC) are both industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, profitability, institutional ownership, analyst recommendations, risk and valuation.

Valuation and Earnings

This table compares G4S and Digimarc”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
G4S	N/A	N/A	N/A	N/A	N/A
Digimarc	$33.91 million	3.99	-$32.31 million	($1.50)	-4.08

G4S has higher earnings, but lower revenue than Digimarc.

Analyst Recommendations

This is a breakdown of current ratings and price targets for G4S and Digimarc, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
G4S	0	0	0	0	0.00
Digimarc	1	0	1	0	2.00

Digimarc has a consensus price target of $10.00, suggesting a potential upside of 63.40%. Given Digimarc’s stronger consensus rating and higher probable upside, analysts clearly believe Digimarc is more favorable than G4S.

Insider & Institutional Ownership

66.9% of Digimarc shares are held by institutional investors. 19.3% of Digimarc shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares G4S and Digimarc’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
G4S	N/A	N/A	N/A
Digimarc	-95.27%	-38.41%	-29.00%

Summary

Digimarc beats G4S on 6 of the 9 factors compared between the two stocks.

About G4S

G4S plc, together with its subsidiaries, operates as an integrated security company in Africa, the Americas, Asia, Europe, and the Middle East. The company offers software tools, including evidence-based risk assessment, incident management, and travel advisory systems, such as symmetry incident management; and proprietary security systems comprising symmetry connect access control and visitor management systems. It also provides retail technology solutions, comprising of Retail Cash Solutions, CASH360, and South Africa-Deposita; security advice, risk mitigation strategies, secure support, and integrated solutions; and offer custody, detention, rehabilitation, and care services. The company serves corporates, financial institutions, private energy/utilities, retail, leisure and consumers, private energy/utilities, transport, ports, and aviation. G4S plc was founded in 1901 and is headquartered in London, the United Kingdom. G4S plc is a subsidiary of Atlas UK Bidco Limited.

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.