Analyzing Perficient (PRFT) & Monotype Imaging (TYPE)
Perficient (NASDAQ: PRFT) and Monotype Imaging (NASDAQ:TYPE) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, risk and valuation.
Volatility & Risk
Perficient has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500. Comparatively, Monotype Imaging has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500.
Monotype Imaging pays an annual dividend of $0.46 per share and has a dividend yield of 2.3%. Perficient does not pay a dividend. Monotype Imaging pays out 86.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Monotype Imaging has increased its dividend for 5 consecutive years.
Earnings and Valuation
This table compares Perficient and Monotype Imaging’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Perficient||$485.26 million||1.96||$18.58 million||$0.95||28.49|
|Monotype Imaging||$235.79 million||3.61||$11.56 million||$0.53||38.11|
Perficient has higher revenue and earnings than Monotype Imaging. Perficient is trading at a lower price-to-earnings ratio than Monotype Imaging, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and recommmendations for Perficient and Monotype Imaging, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Perficient presently has a consensus price target of $27.67, suggesting a potential upside of 2.20%. Monotype Imaging has a consensus price target of $27.50, suggesting a potential upside of 36.14%. Given Monotype Imaging’s higher possible upside, analysts plainly believe Monotype Imaging is more favorable than Perficient.
Insider & Institutional Ownership
80.3% of Perficient shares are held by institutional investors. Comparatively, 89.0% of Monotype Imaging shares are held by institutional investors. 3.7% of Perficient shares are held by company insiders. Comparatively, 3.4% of Monotype Imaging shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares Perficient and Monotype Imaging’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Perficient beats Monotype Imaging on 9 of the 17 factors compared between the two stocks.
Perficient, Inc. provides information technology and management consulting services in the United States. The company designs, builds, and delivers solutions using middleware software products developed by third-party vendors. Its solutions include portals and collaboration, such as searchable data systems, collaborative systems for process improvement, transaction processing, unified and extended reporting, and other services; and platform implementations services, including application server selection, architecture planning, installation and configuration, clustering for availability, performance assessment and issue remediation, security, and technology migrations. The company also offers management consulting services in the areas of organizational change management, business analytics, project management, process excellence, and other; and cloud services comprising architecture, business value and health checks assessments, strategy and road maps, and vendor evaluation and selection services. In addition, it provides product configuration digital marketing services, including search engine marketing, user experience and design, and conversion rate optimization; commerce solutions; and content management solutions. Further, the company offers business analytics; custom applications; business integration; business process management; customer relationship management; enterprise data and business intelligence; enterprise performance management; DevOps; and enterprise mobile solutions. It serves the healthcare, financial services, automotive and transport products, retail and consumer goods, manufacturing, electronics and computer hardware, telecommunications, business services and leisure, media and entertainment, and energy and utilities markets. Perficient, Inc. was founded in 1997 and is headquartered in St. Louis, Missouri.
About Monotype Imaging
Monotype Imaging Holdings Inc. develops, markets, and licenses technologies and fonts in the United States, the United Kingdom, Germany, Japan, and rest of Asia. The company offers font products, including its own fonts from the Monotype Libraries, as well as fonts from third parties through its e-commerce Websites, including myfonts.com, fonts.com, fontshop.com, and linotype.com. It also provides font scaling engine and font compression technologies that are compatible with virtually font formats and industry standards, including the PostScript and PCL printing languages; font solutions for consumer device manufacturers, including Edge and SmartHint technologies for precise pixel adjustments to enable fonts to display with optimal quality in suboptimal display environments; printer driver kits; and fonts for printer manufacturers. In addition, the company offers screen imaging technologies; a mobile engagement platform that enables brands and advertisers to create and distribute branded content; brand engagement and social endorsement technologies through mobile and digital channels; and various tools to enhance user experiences. Further, it provides expert consultation and custom type design services; and technology support and professional services. The company provides approximately 14,000 typeface designs, and supports approximately 250 Latin and non-Latin languages. Its solutions are used in various devices, including laser printers, digital copiers, mobile phones, automotive displays, navigation devices, e-book readers, tablets, digital cameras, digital televisions, set-top boxes, consumer appliances, and Internet of things devices, as well as in various software applications and operating systems. The company serves content creators, marketers, consumer device manufacturers, and independent software vendors and developers. Monotype Imaging Holdings Inc. is headquartered in Woburn, Massachusetts.
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