Datawatch (NASDAQ: DWCH) and Bridgeline Digital (NASDAQ:BLIN) are both small-cap technology companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, risk, analyst recommendations, earnings and profitability.
Insider & Institutional Ownership
41.7% of Datawatch shares are held by institutional investors. Comparatively, 6.0% of Bridgeline Digital shares are held by institutional investors. 9.4% of Datawatch shares are held by company insiders. Comparatively, 29.6% of Bridgeline Digital shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This is a summary of recent ratings for Datawatch and Bridgeline Digital, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Datawatch presently has a consensus price target of $14.00, indicating a potential upside of 45.83%. Given Datawatch’s higher probable upside, analysts plainly believe Datawatch is more favorable than Bridgeline Digital.
This table compares Datawatch and Bridgeline Digital’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
Datawatch has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500. Comparatively, Bridgeline Digital has a beta of 0.09, meaning that its share price is 91% less volatile than the S&P 500.
Earnings and Valuation
This table compares Datawatch and Bridgeline Digital’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Datawatch||$36.26 million||3.27||-$3.99 million||$0.34||28.24|
|Bridgeline Digital||$16.29 million||0.50||-$1.60 million||($0.47)||-4.11|
Bridgeline Digital has lower revenue, but higher earnings than Datawatch. Bridgeline Digital is trading at a lower price-to-earnings ratio than Datawatch, indicating that it is currently the more affordable of the two stocks.
Datawatch beats Bridgeline Digital on 10 of the 12 factors compared between the two stocks.
Datawatch Corporation is engaged in the design, development, marketing, distribution and support of business computer software primarily for the self-service data preparation and visual data discovery markets. The Company also provides services, including implementation and support of its software products, as well as training on their use and administration. The Company’s product family includes Datawatch Monarch, Datawatch Panopticon and Datawatch Report Mining Server (RMS). The Company offers its enterprise products through perpetual licenses and subscription pricing models. The Company also offers educational services for customers and partners implementing and learning about the platform, maintenance and support, and professional services to provide in-depth technical assistance for software implementations. The Company offers an array of live and virtual classroom instruction, including private onsite classes.
About Bridgeline Digital
Bridgeline Digital, Inc. is a digital engagement company. The Company’s iAPPS platform is a Web Engagement Management (WEM) platform that integrates Web Content Management, e-commerce, e-marketing, Social Media management and Web Analytics to help marketers deliver digital experiences that engage and convert their customers across all channels. The iAPPS platform is delivered through a cloud-based Software as a Service (SaaS) multi-tenant business model, which provides customers with deployment providing maintenance, daily technical operation and support, or through a perpetual licensing business model. The iAPPS suite of products includes iAPPS Experience Manager, iAPPS Content Manager, iAPPS Commerce, iAPPS Marketier, iAPPS Analyzer, iAPPSds and iAPPS Social. It offers various services, such as digital engagement services, digital strategy services, usability design and information architecture. It provides shared hosting, dedicated hosting and SaaS hosting for its customers.
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