Digital Turbine (NASDAQ: APPS) and Asure Software (NASDAQ:ASUR) are both small-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Analyst Ratings

This is a summary of recent recommendations and price targets for Digital Turbine and Asure Software, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Digital Turbine 0 0 4 0 3.00
Asure Software 0 1 7 0 2.88

Digital Turbine currently has a consensus price target of $1.63, indicating a potential upside of 3.50%. Asure Software has a consensus price target of $16.57, indicating a potential upside of 21.76%. Given Asure Software’s higher possible upside, analysts clearly believe Asure Software is more favorable than Digital Turbine.

Profitability

This table compares Digital Turbine and Asure Software’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Digital Turbine -20.41% -23.85% -13.37%
Asure Software -8.28% 8.53% 2.35%

Volatility & Risk

Digital Turbine has a beta of 1.34, indicating that its stock price is 34% more volatile than the S&P 500. Comparatively, Asure Software has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500.

Institutional and Insider Ownership

15.8% of Digital Turbine shares are held by institutional investors. Comparatively, 41.2% of Asure Software shares are held by institutional investors. 4.8% of Digital Turbine shares are held by insiders. Comparatively, 22.7% of Asure Software shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Digital Turbine and Asure Software’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Digital Turbine $91.55 million 1.23 -$24.26 million ($0.30) -5.23
Asure Software $35.54 million 4.78 -$970,000.00 ($0.38) -35.82

Asure Software has higher revenue, but lower earnings than Digital Turbine. Asure Software is trading at a lower price-to-earnings ratio than Digital Turbine, indicating that it is currently the more affordable of the two stocks.

Summary

Asure Software beats Digital Turbine on 9 of the 13 factors compared between the two stocks.

Digital Turbine Company Profile

Digital Turbine, Inc. is engaged in delivering end-to-end products and solutions for mobile operators, application advertisers, device original equipment manufacturers (OEMs) and other third parties to enable them to monetize mobile content. The Company operates its business in two operating segments: Advertising and Content. The Advertising segment consists of two businesses: Operator and OEM (O&O) and Advertiser and Publisher (A&P). The O&O business is an advertiser solution for carrier and OEM inventory consisting of services, such as Ignite, a mobile device management platform and Discover, an intelligent application discovery platform. Its A&P business is a mobile user acquisition network across the world consisting of services, such as syndicated network and real time bidding (RTB). The Content segment consists of services, including Marketplace, which is an application and content store, and Pay, which is a content management and mobile payment solution.

Asure Software Company Profile

Asure Software, Inc. is a global provider of cloud-based software-as-a-service (SaaS) solutions that help companies to bring people, time, space and assets together. The Company serves approximately 6,000 clients in over 80 countries. The Company offers a range of solutions to help its clients optimize and manage mobile workforces and global workspaces. Its SaaS-based offerings include asset management, mobile room scheduling, mobile time tracking, scheduling software, space utilization solutions, tablet-based time clocks, time clocks, touch panels for room scheduling and workplace business intelligence (BI) analytics. It offers approximately two product lines, including AsureSpace and AsureForce. Its AsureSpace provides workplace management solutions that enable organizations to manage their office environments and manage real estate utilization. Its AsureForce time and labor management solutions help organizations to manage labor and labor administration costs and activities.

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