Financial Analysis: FRONTEO (NASDAQ:FTEO) versus DATATRAK International (NASDAQ:DTRK)

FRONTEO (NASDAQ:FTEO) and DATATRAK International (OTCMKTS:DTRK) are both small-cap business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, institutional ownership, earnings, valuation, risk and analyst recommendations.

Profitability

This table compares FRONTEO and DATATRAK International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FRONTEO 0.64% 0.23% 0.08%
DATATRAK International 5.75% 85.13% 7.90%

Analyst Ratings

This is a summary of recent ratings for FRONTEO and DATATRAK International, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FRONTEO 0 0 0 0 N/A
DATATRAK International 0 0 0 0 N/A

Valuation & Earnings

This table compares FRONTEO and DATATRAK International’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FRONTEO $101.88 million 1.22 $630,000.00 N/A N/A
DATATRAK International $7.45 million 1.97 $160,000.00 N/A N/A

FRONTEO has higher revenue and earnings than DATATRAK International.

Risk & Volatility

FRONTEO has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500. Comparatively, DATATRAK International has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500.

FRONTEO Company Profile

FRONTEO, Inc. provides Asian-language eDiscovery solutions and services primarily in the United States, Europe, and Asia. The company operates in two segments, Legal Tech Services and Artificial Intelligence (AI) Solutions Services. It has eDiscovery and forensic information documented in Japanese, Korean, Chinese, and English. The company assists clients involved in cross-border litigation, administrative proceedings, and internal investigations, including those related to antitrust investigations, intellectual property litigation, the Foreign Corrupt Practices Act, and product liability investigations. It also provides Lit i View, an online eDiscovery software, which handles Asian-language characters, encoding schemes, and native file systems; and Intelligence Cloud solution to maintain client data during and after a particular litigation or investigation, and data and documents in a relational database of its clients' data and documents. In addition, the company offers electronic data forensic investigation solutions and services that enables the preservation, analysis, processing, and production of electronically stored information in connection with fraud and corporate information leakage; forensic tools; and Lit i View XAMINER, a digital forensic software, and other related hardware and software products. Further, it helps to create document management procedures; conduct corporate risk audits; and comply with legal requirements to provide information to stakeholders. Additionally, the company provides AI solutions in the fields of business intelligence, healthcare, and digital communications. It serves enterprises, government agencies, law firms, and other organizations under the FRONTEO, KIBIT, and Landscaping brands. The company was formerly known as UBIC, Inc. and changed its name to FRONTEO, Inc. in July 2016. FRONTEO, Inc. was founded in 2003 and is headquartered in Tokyo, Japan.

DATATRAK International Company Profile

DATATRAK International, Inc., a technology and services company, provides unified clinical solutions and related services for the clinical trials industry. The company offers DATATRAK ONE Unified Experience, a clinical enterprise solution that allows clinical users and service providers to design, deliver, and manage clinical trials. Its products include UX CTMS 360 for planning and managing trials; UX Trial to streamline design-to-deployment process using a tool; UX EDC & Medical Coding for capturing and delivering data; UX Randomization and Trial Supply Management to randomize patients and automate supply; UX Patient Data Capture; UX Safety; and UX Training to train users and track certificates. The company also provides DATATRAK Clinical Consulting Services, such as training, support, learning center, Software as a Service hosting, standards, and trial design services. It serves contract research organizations, pharma and biotech companies, and clinical trial device companies. DATATRAK International, Inc. was founded in 1991 and is headquartered in Mayfield Heights, Ohio.

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