Digimarc (NASDAQ:DMRC – Get Free Report) and Light & Wonder (NASDAQ:LNW – Get Free Report) are both industrial products companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, earnings, dividends, valuation and profitability.
Institutional and Insider Ownership
66.8% of Digimarc shares are owned by institutional investors. Comparatively, 88.1% of Light & Wonder shares are owned by institutional investors. 19.3% of Digimarc shares are owned by insiders. Comparatively, 2.1% of Light & Wonder shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Risk and Volatility
Digimarc has a beta of 1.62, meaning that its share price is 62% more volatile than the S&P 500. Comparatively, Light & Wonder has a beta of 1.75, meaning that its share price is 75% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Digimarc | 0 | 1 | 1 | 0 | 2.50 |
| Light & Wonder | 1 | 4 | 6 | 0 | 2.45 |
Digimarc presently has a consensus target price of $34.00, suggesting a potential upside of 12.92%. Light & Wonder has a consensus target price of $95.08, suggesting a potential downside of 7.79%. Given Digimarc’s stronger consensus rating and higher probable upside, analysts clearly believe Digimarc is more favorable than Light & Wonder.
Earnings and Valuation
This table compares Digimarc and Light & Wonder’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Digimarc | $36.95 million | 17.42 | -$45.96 million | ($2.08) | -14.48 |
| Light & Wonder | $2.90 billion | 3.20 | $163.00 million | $2.41 | 42.79 |
Light & Wonder has higher revenue and earnings than Digimarc. Digimarc is trading at a lower price-to-earnings ratio than Light & Wonder, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Digimarc and Light & Wonder’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Digimarc | -114.38% | -46.01% | -36.78% |
| Light & Wonder | 7.43% | 32.27% | 5.58% |
Summary
Light & Wonder beats Digimarc on 10 of the 14 factors compared between the two stocks.
About Digimarc
Digimarc Corporation, together with its subsidiaries, provides automatic identification solutions to commercial and government customers in the United States and internationally. The company offers Digimarc Validate protects, a cloud-based record of product authentication information; Digimarc Engage, an interactive communications channel connecting brands and consumers; and Digimarc Recycle. Its solutions are used in various application solutions, such as sorting of consumer-packaged goods in recycling streams. The company offers its solutions through its sales personnel and business partners. Digimarc Corporation was incorporated in 2008 and is based in Beaverton, Oregon.
About Light & Wonder
Light & Wonder, Inc. operates as a cross-platform games company in the United States and internationally. The company operates through three segments: Gaming, SciPlay, and iGaming segments. The Gaming segment sells game content and gaming machine; video gaming terminals; video lottery terminals, including conversion kits and spare parts; and table products, including automatic card shufflers, deck checkers, table roulette chip sorters and other land-based table gaming equipment. It also leases or provides gaming content, gaming machines, and server-based system; sells and supports casino-management system based software and hardware; and licenses proprietary table games content to commercial, tribal and governmental gaming operators. The SciPlay segment develops, markets, and operates social games on various mobile and web platforms, as well as other games in the hyper-casual space. It sells virtual coins, chips, or bingo cards, which players can use to play slot games, table games, or bingo games. The iGaming segment provides a suite of digital gaming content, distribution platforms, player account management systems, and other iGaming content and services. This segment also offers the Open Platform System, which offers a range of reporting and administrative functions and tools providing operators control over various areas of digital gaming operations. Light & Wonder, Inc. was incorporated in 1984 and is headquartered in Las Vegas, Nevada.
Receive News & Ratings for Digimarc Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Digimarc and related companies with MarketBeat.com's FREE daily email newsletter.
