BSQUARE (NASDAQ:BSQR) and Sito Mobile (NASDAQ:SITO) are both small-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.

Profitability

This table compares BSQUARE and Sito Mobile’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BSQUARE -18.71% -41.17% -25.68%
Sito Mobile -52.84% -130.46% -71.38%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for BSQUARE and Sito Mobile, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BSQUARE 0 0 0 0 N/A
Sito Mobile 0 0 3 0 3.00

Sito Mobile has a consensus price target of $8.50, indicating a potential upside of 415.15%. Given Sito Mobile’s higher probable upside, analysts plainly believe Sito Mobile is more favorable than BSQUARE.

Volatility and Risk

BSQUARE has a beta of 1.99, indicating that its share price is 99% more volatile than the S&P 500. Comparatively, Sito Mobile has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500.

Insider and Institutional Ownership

22.3% of BSQUARE shares are owned by institutional investors. Comparatively, 13.1% of Sito Mobile shares are owned by institutional investors. 11.0% of BSQUARE shares are owned by company insiders. Comparatively, 3.2% of Sito Mobile shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares BSQUARE and Sito Mobile’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BSQUARE $73.41 million 0.37 -$13.74 million N/A N/A
Sito Mobile $43.10 million 0.97 -$15.03 million ($0.50) -3.30

BSQUARE has higher revenue and earnings than Sito Mobile.

Summary

BSQUARE beats Sito Mobile on 8 of the 11 factors compared between the two stocks.

About BSQUARE

BSQUARE Corporation provides software solutions and related engineering services to businesses that develop, market, and sell standalone intelligent systems in North America, Europe, and Asia. Its software products include HTML5 rendering engine that is based on the open-source WebKit platform and facilitates device makers to create applications and user interfaces for their devices; and TestQuest 10, a software testing automation tool. The company also offers DataV software services, such as integration with enterprise databases; integration with internal enterprise systems; integration with external public or third-party data sources; custom application development; software integration on remote devices; training; and management of customer cloud deployments hosting DataV software. In addition, it provides engineering services, such as architectural and system design; software design and development; platform development systems integration; application, middleware, and multimedia software development; quality assurance and testing; device solution strategy consulting; technical support; implementation; and test automation engineering and consulting services. The company markets and sells its products to original equipment manufacturers, original design manufacturers, and corporate enterprises, as well as silicon and peripheral vendors. BSQUARE Corporation was founded in 1994 and is headquartered in Bellevue, Washington.

About Sito Mobile

SITO Mobile, Ltd. provides advertisement delivery, measurement and attribution, and consumer insights using its proprietary location-based marketing intelligence platform in the United States and Canada. It offers Ad Placement, which delivers advertisements on behalf of its customers to audiences of existing and prospective consumers in a privacy compliant manner; and advertisements across television, desktop, social media, and digital out of home platforms. The company also provides measurement and attribution products, including Real-time Verified Walk-In, a platform built in-house working in tandem with a data management platform and demand side platform; Location, Audience and Behavior Sciences reports that provide an analysis of a customer's audience, breaking down location, and purchase and demographic data against various control groups for selected targeted audiences in real time; and Purchase Science Reports, which offer transaction data to make marketing campaigns relevant and measurable. In addition, it offers Insights products, such as Consumer Behavior and Location Sciences, which explores the consumer journey and presents strategic knowledge assets and actionable insights for executives and strategic decision makers looking to understand and influence consumer behaviors. The company provides its services to brands, advertising agencies, out-of-home advertisers, media companies, and non-media companies through salesforce and account management teams. The company was formerly known as Single Touch Systems, Inc. and changed its name to SITO Mobile, Ltd. in September 2014. SITO Mobile, Ltd. was incorporated in 2000 and is based in Jersey City, New Jersey.

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