Analyzing Wellchange (NASDAQ:WCT) and DoubleVerify (NYSE:DV)

DoubleVerify (NYSE:DV) and Wellchange (NASDAQ:WCT) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.

Volatility & Risk

DoubleVerify has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500. Comparatively, Wellchange has a beta of 2.71, indicating that its share price is 171% more volatile than the S&P 500.

Valuation and Earnings

This table compares DoubleVerify and Wellchange”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DoubleVerify	$748.29 million	2.38	$50.65 million	$0.33	35.12
Wellchange	$1.35 million	2.59	-$7.32 million	N/A	N/A

DoubleVerify has higher revenue and earnings than Wellchange.

Analyst Ratings

This is a summary of recent recommendations and price targets for DoubleVerify and Wellchange, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DoubleVerify	2	4	10	0	2.50
Wellchange	1	0	0	0	1.00

DoubleVerify presently has a consensus target price of $15.39, suggesting a potential upside of 32.80%. Given DoubleVerify’s stronger consensus rating and higher possible upside, equities research analysts plainly believe DoubleVerify is more favorable than Wellchange.

Profitability

This table compares DoubleVerify and Wellchange’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DoubleVerify	7.16%	7.98%	6.69%
Wellchange	N/A	N/A	N/A

Insider and Institutional Ownership

97.3% of DoubleVerify shares are held by institutional investors. 4.0% of DoubleVerify shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

DoubleVerify beats Wellchange on 10 of the 12 factors compared between the two stocks.

About DoubleVerify

DoubleVerify Holdings, Inc. provides a software platform for digital media measurement, and data analytics in the United States and internationally. The company provides solutions to advertisers that enable advertisers to increase the effectiveness and quality and return on their digital advertising investments. It offers DV Authentic Ad, a metric of digital media quality, which evaluates the existence of fraud-free, brand-suitable, viewability, and geography for each digital ad; DV Authentic Attention that provides actionable, and comprehensive data to drive campaign performance; and Custom Contextual solution, which allows advertisers to match their ads to relevant content to maximize user engagement and drive campaign performance. In addition, the company provides DV Publisher suite, a solution for digital publishers to manage revenue and increase inventory yield by improving video delivery, identifying lost or unfilled sales, and aggregate data across all inventory sources; and DV Pinnacle, a service and analytics platform user interface that allows its customers to adjust and deploy controls for their media plan and track campaign performance metrics across channels, formats, and devices. Further, it offers software solutions are integrated in the digital advertising ecosystem, including programmatic platforms, social media channels, and digital publishers. It serves brands, publishers, and other supply-side customers covering various industry verticals, including consumer packaged goods, financial services, telecommunications, technology, automotive, and healthcare. The company was founded in 2008 and is headquartered in New York, New York.

About Wellchange

Wellchange Holdings Company Limited, through its subsidiaries, operates as an enterprise software solution services provider in Hong Kong. The company provides tailor-made software solutions, cloud-based software-as-a-service (SaaS) solutions, and white-labelled software design and development services. The company also operates MR. CLOUD, a cloud-based SaaS enterprise resource planning software platform based on subscription services to support back-office and front-office functions, such as finance and accounting, procurement, manufacturing, inventory management, order management, warehouse management, supply chain management, customer relationship management, professional services automation, project and file management, human resources management, e-commerce, and marketing automation. In addition, the company offers mobile application, web development, and desktop software development services. It serves small and medium-sized businesses and corporate customers. The company was founded in 2011 and is based in Cheung Sha Wan, Hong Kong. Wellchange Holdings Company Limited operates as a subsidiary of Power Smart International Limited.