Monotype Imaging (NASDAQ:TYPE) and MIND C.T.I. (NASDAQ:MNDO) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, dividends, institutional ownership, profitability and analyst recommendations.

Earnings and Valuation

This table compares Monotype Imaging and MIND C.T.I.’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Monotype Imaging $246.74 million 3.42 $12.27 million $0.78 26.09
MIND C.T.I. $18.14 million 2.37 $5.13 million N/A N/A

Monotype Imaging has higher revenue and earnings than MIND C.T.I..

Analyst Recommendations

This is a summary of recent ratings and target prices for Monotype Imaging and MIND C.T.I., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Monotype Imaging 0 1 1 0 2.50
MIND C.T.I. 0 0 0 0 N/A

Monotype Imaging presently has a consensus price target of $31.00, indicating a potential upside of 52.33%. Given Monotype Imaging’s higher probable upside, equities analysts plainly believe Monotype Imaging is more favorable than MIND C.T.I..

Institutional and Insider Ownership

91.8% of Monotype Imaging shares are owned by institutional investors. Comparatively, 15.2% of MIND C.T.I. shares are owned by institutional investors. 3.4% of Monotype Imaging shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Monotype Imaging and MIND C.T.I.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Monotype Imaging 4.89% 9.70% 6.33%
MIND C.T.I. 28.59% 27.40% 21.00%

Volatility and Risk

Monotype Imaging has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500. Comparatively, MIND C.T.I. has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500.

Dividends

Monotype Imaging pays an annual dividend of $0.46 per share and has a dividend yield of 2.3%. MIND C.T.I. pays an annual dividend of $0.26 per share and has a dividend yield of 12.0%. Monotype Imaging pays out 59.0% of its earnings in the form of a dividend. Monotype Imaging has increased its dividend for 6 consecutive years.

Summary

Monotype Imaging beats MIND C.T.I. on 10 of the 15 factors compared between the two stocks.

About Monotype Imaging

Monotype Imaging Holdings Inc. develops, markets, and licenses technologies and fonts in the United States, the United Kingdom, Germany, Japan, and rest of Asia. The company offers font products, including its own fonts from the Monotype Libraries, as well as fonts from third parties through its e-commerce Websites, including myfonts.com, fonts.com, fontshop.com, and linotype.com. It also provides font scaling engine and font compression technologies that are compatible with virtually font formats and industry standards, including the PostScript and PCL printing languages; font solutions for consumer device manufacturers, including Edge and SmartHint technologies for precise pixel adjustments to enable fonts to display with optimal quality in suboptimal display environments; printer driver kits; and fonts for printer manufacturers. In addition, the company offers screen imaging technologies; a mobile engagement platform that enables brands and advertisers to create and distribute branded content; brand engagement and social endorsement technologies through mobile and digital channels; and various tools to enhance user experiences. Further, it provides expert consultation and custom type design services; and technology support and professional services. The company provides approximately 14,000 typeface designs, and supports approximately 250 Latin and non-Latin languages. Its solutions are used in various devices, including laser printers, digital copiers, mobile phones, automotive displays, navigation devices, e-book readers, tablets, digital cameras, digital televisions, set-top boxes, consumer appliances, and Internet of things devices, as well as in various software applications and operating systems. The company serves content creators, marketers, consumer device manufacturers, and independent software vendors and developers. Monotype Imaging Holdings Inc. is headquartered in Woburn, Massachusetts.

About MIND C.T.I.

MIND C.T.I. Ltd., together with its subsidiaries, designs, develops, markets, supports, implements, and operates real-time and off-line convergent billing and customer care software solutions in the United States, the United Kingdom and Rest of Europe, Israel, and internationally. The company offers billing and customer care solution that supports various services, such as voice, data, and content services, as well as prepaid, postpaid, and pay-in-advance payment models in a single platform. Its solutions also include a workflow engine to support the implementation of business processes, including subscriber registration, order management, trouble ticket, and debt collection; and an integral point of sale solution that covers all dealer, store and cashier management, and sales processes. In addition, the company offers professional services comprising installation, turnkey project implementation services, customer support, training and maintenance services, software and process customization, and project management, as well as managed services, including day to day billing operational tasks primarily to its billing and customer care customers. Further, it provides PhonEX-ONE, a call management system that collects, records, and stores call information, which is used by corporations for telecom expense management, call accounting, traffic analysis, and fraud detection. The company offers its products directly, as well as through network equipment vendors and systems integrators, and resellers primarily to communication providers, such as traditional wireline and wireless, voice over IP, broadband IP network operators, LTE operators, cable operators, and mobile virtual network operators. MIND C.T.I. Ltd. was founded in 1995 and is headquartered in Yokne'am Illit, Israel.

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