Atea ASA (OTC:ATAZF) and Digimarc (NASDAQ:DMRC) Financial Contrast

Atea ASA (OTC:ATAZF) and Digimarc (NASDAQ:DMRC) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Earnings and Valuation

This table compares Atea ASA and Digimarc”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atea ASA	N/A	N/A	N/A	C$3.96	3.54
Digimarc	$38.60 million	15.51	-$45.96 million	($2.08)	-13.46

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

Insider and Institutional Ownership

45.0% of Atea ASA shares are owned by institutional investors. Comparatively, 66.8% of Digimarc shares are owned by institutional investors. 19.3% of Digimarc shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Atea ASA and Digimarc’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Atea ASA	N/A	N/A	N/A
Digimarc	-105.98%	-41.60%	-33.54%

Dividends

Atea ASA pays an annual dividend of C$3.00 per share and has a dividend yield of 21.4%. Digimarc pays an annual dividend of $0.44 per share and has a dividend yield of 1.6%. Atea ASA pays out 75.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Digimarc pays out -21.2% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Atea ASA and Digimarc, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atea ASA	0	0	0	0	N/A
Digimarc	0	1	1	0	2.50

Digimarc has a consensus price target of $34.00, suggesting a potential upside of 21.43%. Given Digimarc’s higher probable upside, analysts plainly believe Digimarc is more favorable than Atea ASA.

About Atea ASA

Atea ASA provides IT infrastructure and related solutions for businesses and public sector organizations in the Nordic countries and Baltic regions. The company offers data center and networking solutions comprising of cloudtrack, continuity planning, backup service, managed data center, cloud intelligence service, and disaster recovery services. It is also involved in software licensing and cloud solutions. In addition, the company provides business intelligence, Internet of Things, artificial intelligence, and machine learning services. Further, it offers IT security lifecycle management, and digital workplace solutions. Atea ASA was founded in 1968 and is headquartered in Oslo, Norway.

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.