Critical Analysis: Waystar (NASDAQ:WAY) versus Digimarc (NASDAQ:DMRC)

Waystar (NASDAQ:WAY) and Digimarc (NASDAQ:DMRC) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, valuation, profitability, analyst recommendations, risk, dividends and earnings.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Waystar	$791.01 million	6.74	-$51.33 million	N/A	N/A
Digimarc	$39.04 million	18.49	-$45.96 million	($1.95)	-17.29

Digimarc has lower revenue, but higher earnings than Waystar.

Analyst Ratings

This is a summary of current ratings for Waystar and Digimarc, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Waystar	0	0	10	1	3.09
Digimarc	0	1	1	0	2.50

Waystar presently has a consensus price target of $32.90, indicating a potential upside of 6.27%. Digimarc has a consensus price target of $34.00, indicating a potential upside of 0.86%. Given Waystar’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Waystar is more favorable than Digimarc.

Insider and Institutional Ownership

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Waystar	N/A	N/A	N/A
Digimarc	-104.84%	-41.67%	-34.11%

Summary

Waystar beats Digimarc on 8 of the 12 factors compared between the two stocks.

About Waystar

Waystar Holding Corp. is a software company which provide healthcare payments. Waystar Holding Corp. is based in LEHI, Utah.

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.