Critical Review: DynTek (DYNE) versus Wageworks (WAGE)

DynTek (OTCMKTS:DYNE) and Wageworks (NYSE:WAGE) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, profitability, earnings, institutional ownership, valuation and dividends.

Risk and Volatility

DynTek has a beta of -0.75, indicating that its stock price is 175% less volatile than the S&P 500. Comparatively, Wageworks has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500.

Profitability

This table compares DynTek and Wageworks’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DynTek 2.40% 15.35% 5.15%
Wageworks N/A N/A N/A

Analyst Recommendations

This is a breakdown of recent ratings and target prices for DynTek and Wageworks, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DynTek 0 0 0 0 N/A
Wageworks 0 2 4 0 2.67

Wageworks has a consensus price target of $48.62, suggesting a potential upside of 74.20%. Given Wageworks’ higher probable upside, analysts plainly believe Wageworks is more favorable than DynTek.

Valuation and Earnings

This table compares DynTek and Wageworks’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
DynTek $169.82 million 0.27 $2.19 million N/A N/A
Wageworks $364.71 million 3.03 $20.20 million N/A N/A

Wageworks has higher revenue and earnings than DynTek.

Summary

Wageworks beats DynTek on 6 of the 9 factors compared between the two stocks.

DynTek Company Profile

DynTek, Inc. provides professional information technology services to mid-market commercial businesses, state and local government agencies, and educational institutions. It offers infrastructure and data center solutions, including advanced networking, security, server virtualization, and servers and storage solutions; and Microsoft platform solutions comprising management and virtualization, messaging, communications, desktop, data platform, identity and security, portals and collaboration, and midmarket solutions. The company also provides endpoint computing solutions, such as desktop and application, application and desktop virtualization, and desktop management solutions; and talent acquisition and staff augmentation solutions. In addition, it engages in value-added resale of hardware and software products. The company was formerly known as TekInsight, Inc. and changed its name to DynTek, Inc. in December 2001. DynTek, Inc. was founded in 1989 and is headquartered in Newport Beach, California.

Wageworks Company Profile

WageWorks, Inc. is a leader in administering Consumer-Directed Benefits (CDBs). WageWorks is solely dedicated to administering CDBs, including pre-tax spending accounts, such as Health Savings Accounts (HSAs), health and dependent care Flexible Spending Accounts (FSAs), Health Reimbursement Arrangements (HRAs), as well as Commuter Benefit Services, including transit and parking programs, wellness programs, COBRA, and other employee benefits. WageWorks is headquartered in San Mateo, California, with offices in major locations throughout the United States.

Receive News & Ratings for DynTek Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for DynTek and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply