Contrasting Atea ASA (OTC:ATAZF) and Digimarc (NASDAQ:DMRC)
by Danessa Lincoln · The Markets DailyAtea ASA (OTC:ATAZF – Get Free Report) and Digimarc (NASDAQ:DMRC – Get Free Report) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, risk, earnings, institutional ownership, analyst recommendations, profitability and dividends.
Earnings & 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 | 14.81 | -$45.96 million | ($2.08) | -12.86 |
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.
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 Ratings
This is a summary of current recommendations and price targets for Atea ASA and Digimarc, as provided by MarketBeat.com.
| 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 target price of $34.00, suggesting a potential upside of 27.15%. Given Digimarc’s higher probable upside, analysts plainly believe Digimarc is more favorable than Atea ASA.
Institutional and Insider Ownership
45.0% of Atea ASA shares are held by institutional investors. Comparatively, 66.8% of Digimarc shares are held by institutional investors. 19.3% of Digimarc shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
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.