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

Earnings and Valuation

This table compares Digimarc and Asure Software’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Digimarc $21.19 million 26.09 -$32.51 million ($2.86) -15.93
Asure Software $88.95 million 1.66 -$7.55 million $0.43 22.30

Asure Software has higher revenue and earnings than Digimarc. Digimarc is trading at a lower price-to-earnings ratio than Asure Software, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

58.0% of Digimarc shares are owned by institutional investors. Comparatively, 49.3% of Asure Software shares are owned by institutional investors. 6.4% of Digimarc shares are owned by company insiders. Comparatively, 18.2% of Asure Software shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for Digimarc and Asure Software, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Digimarc 0 3 1 0 2.25
Asure Software 0 1 6 0 2.86

Digimarc currently has a consensus price target of $52.38, suggesting a potential upside of 14.93%. Asure Software has a consensus price target of $14.43, suggesting a potential upside of 50.45%. Given Asure Software’s stronger consensus rating and higher probable upside, analysts plainly believe Asure Software is more favorable than Digimarc.

Risk & Volatility

Digimarc has a beta of 0.1, meaning that its share price is 90% less volatile than the S&P 500. Comparatively, Asure Software has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Digimarc -154.70% -55.04% -50.23%
Asure Software -8.83% 7.46% 2.25%

Summary

Asure Software beats Digimarc on 12 of the 14 factors compared between the two stocks.

About Digimarc

Digimarc Corporation provides media identification and management solutions to government and commercial customers in the United States and internationally. It 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. The company also provides Digimarc Discover software that enables an ecosystem of connected devices to identify content or materials and deliver information. Its solutions are used in various media identification and management products and solutions, such as retail point of sale transaction processing; track and trace of products within the supply chain; quality control in manufacturing processes; counterfeiting and piracy deterrence; online e-publication piracy protection; content identification and media management; authentication and monitoring; 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 Asure Software

Asure Software, Inc. provides cloud-based human capital management and workspace management solutions worldwide. Its product line includes AsureSpace workspace management solutions that enable organizations to optimize their real estate investment, and create a digital workspace that empowers mobile and virtual employees; and AsureForce time and labor management solutions to help organizations optimize their workforce, as well as control labor administration costs and activities. The company also offers AsureHCM, an integrated cloud-based solution that provides human resource (HR) management and payroll to benefits, talent acquisition, and performance management services; Evolution HCM, an integrated payroll, HR, and tax management suite; and AsureConsulting, which offers a suite of services to assist organizations through the entire employee lifecycle. In addition, it provides SmartView occupancy sensors and analytics platform that offers insights, which allow companies to make strategic decisions about real estate investments and workplace design; and SmartMove, a move management software that help companies design floorplans and track permanent seat assignments, as well as manage assets, such as telephones, laptops, desks, chairs, and other items assigned to an employee. Further, the company provides AsureSpace Resource Scheduler, a solution for the digital workplace that features conference room and desk reservations, service management, interactive floorplans, visitor management, calendar and Web conference integrations, and reporting; and NowSpace, a mobile app for Apple and Android devices that enables mobile workers to find and reserve desks and conference rooms from their smart phones. It serves clients ranging from Fortune 500 to small and mid-sized businesses directly, as well as through reseller and referral partners. Asure Software, Inc. was founded in 1985 and is headquartered in Austin, Texas.

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