Digipath (OTCMKTS:DIGP) and NIC (NASDAQ:EGOV) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, earnings, valuation and dividends.
This table compares Digipath and NIC’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Digipath -58.20% -126.57% -103.96% NIC 16.94% 32.21% 20.19%
Institutional and Insider Ownership
0.5% of Digipath shares are held by institutional investors. Comparatively, 89.3% of NIC shares are held by institutional investors. 4.1% of NIC shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
NIC pays an annual dividend of $0.32 per share and has a dividend yield of 2.3%. Digipath does not pay a dividend. NIC pays out 41.6% of its earnings in the form of a dividend.
Volatility and Risk
Digipath has a beta of 2.8, indicating that its share price is 180% more volatile than the S&P 500. Comparatively, NIC has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500.
This is a summary of recent ratings and recommmendations for Digipath and NIC, as reported by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Digipath 0 0 0 0 N/A NIC 0 3 0 0 2.00
NIC has a consensus price target of $15.50, indicating a potential upside of 12.24%. Given NIC’s higher possible upside, analysts plainly believe NIC is more favorable than Digipath.
Earnings and Valuation
This table compares Digipath and NIC’s top-line revenue, earnings per share and valuation.
Gross Revenue Price/Sales Ratio Net Income