Head-To-Head Analysis: UiPath (NYSE:PATH) & Digimarc (NASDAQ:DMRC)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
UiPath	21.03%	9.70%	6.42%
Digimarc	-99.80%	-34.31%	-24.52%

Volatility and Risk

UiPath has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500. Comparatively, Digimarc has a beta of 2.29, suggesting that its stock price is 129% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for UiPath and Digimarc, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UiPath	1	16	3	0	2.10
Digimarc	1	0	1	0	2.00

UiPath presently has a consensus price target of $16.75, suggesting a potential upside of 23.11%. Digimarc has a consensus price target of $15.00, suggesting a potential upside of 193.54%. Given Digimarc’s higher probable upside, analysts plainly believe Digimarc is more favorable than UiPath.

Institutional and Insider Ownership

62.5% of UiPath shares are owned by institutional investors. Comparatively, 66.8% of Digimarc shares are owned by institutional investors. 22.4% of UiPath shares are owned by company insiders. Comparatively, 26.0% of Digimarc shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares UiPath and Digimarc”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UiPath	$1.72 billion	4.10	$282.33 million	$0.67	20.31
Digimarc	$31.50 million	3.63	-$32.31 million	($1.43)	-3.57

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

Summary

UiPath beats Digimarc on 10 of the 14 factors compared between the two stocks.

About UiPath

UiPath Inc. provides an end-to-end automation platform that offers a range of robotic process automation (RPA) solutions primarily in the United States, Romania, the United Kingdom, the Netherlands, and internationally. The company offers a suite of interrelated software to build, manage, run, engage, measure, and govern automation within the organization. Its platform's embedded AI, ML, and NLP capabilities improve decisioning and information processing; emulate human behavior allows organizations to address a myriad of use cases; emulate human behavior allows organizations to address a myriad of use cases; multi-tenant platform enterprise deployment with security and governance and Automation Cloud, which enables customers to begin automating without the need to provision infrastructure, install applications, or perform additional configurations; intuitive interface and low-code, drag-and-drop functionality; signed to enable people and automations to work together; and tracks, measures, and forecasts the performance of automations, enables customers to gain powerful insights and generate key performance indicators with actionable metric. It serves banking and financial services, healthcare, insurance, public sectors, manufacturing, retail, and telecom industries. The company was founded in 2005 and is headquartered in New York, New York.

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.