Financial Comparison: Veea (NASDAQ:VEEA) & Digimarc (NASDAQ:DMRC)

Digimarc (NASDAQ:DMRC) and Veea (NASDAQ:VEEA) are both small-cap industrial products companies, but which is the superior business? We will compare the two companies based on the strength of their risk, profitability, dividends, institutional ownership, valuation, earnings and analyst recommendations.

Volatility and Risk

Digimarc has a beta of 1.7, indicating that its stock price is 70% more volatile than the S&P 500. Comparatively, Veea has a beta of 0.04, indicating that its stock price is 96% less volatile than the S&P 500.

Earnings & Valuation

This table compares Digimarc and Veea”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Digimarc	$39.04 million	23.32	-$45.96 million	($1.95)	-21.80
Veea	N/A	N/A	-$30,000.00	N/A	N/A

Veea has lower revenue, but higher earnings than Digimarc.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Digimarc	-104.84%	-41.67%	-34.11%
Veea	N/A	N/A	-20.86%

Insider & Institutional Ownership

66.8% of Digimarc shares are held by institutional investors. Comparatively, 25.9% of Veea shares are held by institutional investors. 19.3% of Digimarc shares are held by company insiders. Comparatively, 71.0% of Veea shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Digimarc and Veea, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Digimarc	0	1	1	0	2.50
Veea	0	0	0	0	0.00

Digimarc presently has a consensus target price of $34.00, indicating a potential downside of 20.02%. Given Digimarc’s stronger consensus rating and higher possible upside, equities analysts clearly believe Digimarc is more favorable than Veea.

Summary

Digimarc beats Veea on 6 of the 11 factors compared between the two stocks.

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.

About Veea

Veea Inc. provides computing, multiaccess multiprotocol communications, edge storage, and cybersecurity solutions. The company offers multiaccess edge computing (MEC) platform that redefines connectivity and computing at the edge by integrating functions of servers, network attached storage (NAS), routers, firewalls, Wi-Fi Access Points, IoT gateways, and 4G and 5G connections; and Veea Edge Platform enables direct connections from the optical fiber, cellular, and satellite networks. It also provides VeeaHub STAX, an edge computing product integrated with wireless access, including Wi-Fi 6; VeeaHub that offers connectivity options for pro indoor smart edge applications; and VeeaHub Outdoor that integrates with wireless connectivity for smart edge applications in outdoor and industrial environments. The company also offers TROLLEE, a smart shopping cart platform; the VeeaHub toolkit; and Veea AdEdge, an advertising platform. Veea Inc. was founded in 2014 and is headquartered in New York, New York.