Analyzing Digimarc (DMRC) & 1mage Software (ISOL)

Digimarc (NASDAQ:DMRC) and 1mage Software (OTCMKTS:ISOL) are both small-cap industrial products companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, profitability, valuation and analyst recommendations.

Institutional & Insider Ownership

57.2% of Digimarc shares are owned by institutional investors. 7.5% of Digimarc shares are owned by insiders. Comparatively, 52.8% of 1mage Software shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Digimarc and 1mage Software, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Digimarc 0 0 2 0 3.00
1mage Software 0 0 0 0 N/A

Digimarc currently has a consensus price target of $38.50, indicating a potential upside of 99.79%. Given Digimarc’s higher probable upside, research analysts clearly believe Digimarc is more favorable than 1mage Software.

Profitability

This table compares Digimarc and 1mage Software’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Digimarc -157.82% -45.20% -42.18%
1mage Software N/A N/A N/A

Volatility & Risk

Digimarc has a beta of -0.76, meaning that its share price is 176% less volatile than the S&P 500. Comparatively, 1mage Software has a beta of -3.81, meaning that its share price is 481% less volatile than the S&P 500.

Valuation and Earnings

This table compares Digimarc and 1mage Software’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Digimarc $25.21 million 9.09 -$25.77 million ($2.44) -7.90
1mage Software N/A N/A N/A N/A N/A

1mage Software has lower revenue, but higher earnings than Digimarc.

Summary

Digimarc beats 1mage Software on 5 of the 9 factors compared between the two stocks.

About Digimarc

Digimarc Corporation provides media identification and management solutions to commercial entities and government customers in the United States and internationally. The company offers Digimarc Intuitive Computing Platform, a comprehensive set of technologies for identifying, discovering, and interacting with digitally-enhanced media, which includes Digimarc Barcode, a method for imperceptibly enhancing packaging, print, images, thermal labels, audio, and other objects with data that is detected by enabled devices, such as smart phones, computers, barcode scanners, and machine-vision equipment. It also provides Digimarc Discover software that enables an ecosystem of connected devices to identify content or materials and deliver information. The company's solutions identify, track, manage, and protect content; and enable new consumer applications to access networks and information from personal computers and mobile devices. Its solutions are used in various media identification and management products and solutions, such as counterfeiting and piracy deterrence; online e-publication piracy protection; content identification and media management; authentication and monitoring; retail point of sale transaction processing; linking to networks and providing access to information; and enhanced services in support of mobile commerce. The company provides its solutions directly and through its business partners. Digimarc Corporation was founded in 2008 and is based in Beaverton, Oregon.

About 1mage Software

1mage Software Inc operates in the technology industry. The company offers capturing services, including 1ACCESS, an java-based software application that utilizes the adobe PDF format, which could be printed, faxed, and emailed; application program interfaces consisting of executable subroutines; 1FAX, an software application that manages inbound/outbound fax transmissions and outbound emails; 1SCAN, a windows based software application; and 1ERM that provides simultaneous and multi-user access to indexed and archived computer-generated reports and customer-related documents. Its capturing services also include 1SCANSERV, which allow scanned documents from an MFP or a scanner to be transformed into image files; V1A, a document imaging software that allows viewing images; and Zoë, which gives access to other outside applications. The company also provides integrating services, such as application program interfaces; Zoë that gives access to other outside applications; ZoëFetch, an application bridge, which works with various applications; and Zoë XML Web services that allows users to seamlessly integrate with line of business application. In addition, it offers archiving services; and digital content management system that provides solutions for the scanning, indexing, storing, and retrieving of document images. Further, the company provides 1SEARCH that locate and retrieve documents/images, as well as Web services. Additionally, it offers exporting services, which include 1PUBLISH that enables users with specific security rights; and 1RENDITION, which automates the rendition billing process. The company is based in Englewood, Colorado.

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