Digital Turbine (NASDAQ: APPS) and Quarterhill (NASDAQ:QTRH) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, analyst recommendations, institutional ownership and risk.
Insider and Institutional Ownership
32.0% of Digital Turbine shares are owned by institutional investors. Comparatively, 14.9% of Quarterhill shares are owned by institutional investors. 4.8% of Digital Turbine shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares Digital Turbine and Quarterhill’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Quarterhill pays an annual dividend of $0.04 per share and has a dividend yield of 3.5%. Digital Turbine does not pay a dividend. Quarterhill pays out 7.7% of its earnings in the form of a dividend.
This is a breakdown of current recommendations for Digital Turbine and Quarterhill, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Digital Turbine currently has a consensus price target of $1.90, suggesting a potential upside of 21.79%. Given Digital Turbine’s higher probable upside, research analysts clearly believe Digital Turbine is more favorable than Quarterhill.
Earnings & Valuation
This table compares Digital Turbine and Quarterhill’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Digital Turbine||$74.75 million||1.59||-$52.85 million||($0.09)||-17.33|
|Quarterhill||$134.71 million||1.00||$10.22 million||$0.52||2.17|
Quarterhill has higher revenue and earnings than Digital Turbine. Digital Turbine is trading at a lower price-to-earnings ratio than Quarterhill, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Digital Turbine has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500. Comparatively, Quarterhill has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500.
Quarterhill beats Digital Turbine on 8 of the 15 factors compared between the two stocks.
About Digital Turbine
Digital Turbine, Inc., through its subsidiaries, provides media and mobile communication solutions for mobile operators, app advertisers, device original equipment manufacturers, and other third parties worldwide. It operates through two segments, Advertising and Content. The Advertising segment offers Ignite, a mobile application management software to control, manage, and monetize the applications that are installed on mobile devices; Discover software, which provides application installation and management, as well as detailed reporting to advertisers and carriers; and mobile user acquisition platform that allows mobile advertisers to engage with right customers for their applications. This segment also provides syndicated network service, which accesses mobile ad inventory through publishers, including direct developer relationships, mobile Websites, mobile carriers, and mediated relationships; and programmatic advertising services. The Content segment offers Marketplace, an application and content store that manages the retailing of mobile content, including features, such as merchandising, product placements, reporting, pricing, promotions, and distribution of digital goods, as well as the distribution and licensing of content across various categories comprising music, applications, wallpapers, eBooks, and games; and Pay, an application programming interface that integrates billing infrastructure between mobile operators and content publishers to facilitate mobile commerce. The company was formerly known as Mandalay Digital Group, Inc. and changed its name to Digital Turbine, Inc. in January 2015. Digital Turbine, Inc. was incorporated in 1998 and is headquartered in Austin, Texas.
Quarterhill Inc. focuses on acquisition and management of technology companies that provides products and services worldwide. Its Technology segment licenses patent technologies to approximately 355 companies. Its patent portfolios include patents relating to 3D television, phased loop semiconductor, semiconductor manufacturing and packaging, medical stent, intelligent personal assistant, streaming video, semiconductor clocking, LED lighting, smart meter monitoring, non-volatile flash memory and other memory, building automation, enhanced image processing, computer gaming, and various other technologies; automotive headlight assemblies, microcontrollers applicable to safety-critical aerospace, and CMOS image sensors; and medical, industrial, and automotive applications. Its Mobility segment provides automated truck weigh stations; toll road systems and equipment; traffic management and safety systems; VectorSense, a tire sensor suite; Vehicle Information-In-Motion, a traffic intelligence system; integrated traffic control systems; permanent and portable slow speed weigh-in-motion systems; portable wheel load scales; traffic data collection products; vehicle and axle detection equipment; and automated vehicle identification, and other hardware and software products. It serves intelligent transportation systems industry through salespeople, distributors, agents, other contractors, and systems integrators, as well as directly. Its Factory segment creates and licenses enterprise asset management (EAM) software solutions to asset intensive industries through its salesforce, as well as Internet. It offers WorkAlign, a product suite, which consists of integrated products, such as scheduler, IIoT, mobile for EAM, maintenance budgeting, warranty tracker, and analytics; and consulting services. The company was formerly known as Wi-LAN Inc. and changed its name to Quarterhill Inc. in June 2017. Quarterhill Inc. was incorporated in 1992 and is headquartered in Ottawa, Canada.
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