Head to Head Survey: Light & Wonder (NASDAQ:LNW) versus Digimarc (NASDAQ:DMRC)

Digimarc (NASDAQ:DMRC) and Light & Wonder (NASDAQ:LNW) are both industrial products companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, valuation, analyst recommendations, profitability and risk.

Valuation and Earnings

This table compares Digimarc and Light & Wonder’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Digimarc	$34.85 million	16.09	-$45.96 million	($2.08)	-12.62
Light & Wonder	$2.90 billion	3.17	$163.00 million	$2.41	42.35

Light & Wonder has higher revenue and earnings than Digimarc. Digimarc is trading at a lower price-to-earnings ratio than Light & Wonder, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Digimarc and Light & Wonder’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Digimarc	-114.38%	-46.01%	-36.78%
Light & Wonder	7.43%	32.27%	5.58%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Digimarc and Light & Wonder, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Digimarc	0	2	0	0	2.00
Light & Wonder	1	4	6	0	2.45

Digimarc presently has a consensus target price of $28.00, suggesting a potential upside of 6.71%. Light & Wonder has a consensus target price of $95.08, suggesting a potential downside of 6.84%. Given Digimarc’s higher possible upside, equities analysts clearly believe Digimarc is more favorable than Light & Wonder.

Volatility & Risk

Digimarc has a beta of 1.62, suggesting that its share price is 62% more volatile than the S&P 500. Comparatively, Light & Wonder has a beta of 1.75, suggesting that its share price is 75% more volatile than the S&P 500.

Institutional and Insider Ownership

66.9% of Digimarc shares are held by institutional investors. Comparatively, 88.1% of Light & Wonder shares are held by institutional investors. 19.3% of Digimarc shares are held by company insiders. Comparatively, 2.1% of Light & Wonder shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Light & Wonder beats Digimarc on 11 of the 14 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 Light & Wonder

Light & Wonder, Inc. operates as a cross-platform games company in the United States and internationally. The company operates through three segments: Gaming, SciPlay, and iGaming segments. The Gaming segment sells game content and gaming machine; video gaming terminals; video lottery terminals, including conversion kits and spare parts; and table products, including automatic card shufflers, deck checkers, table roulette chip sorters and other land-based table gaming equipment. It also leases or provides gaming content, gaming machines, and server-based system; sells and supports casino-management system based software and hardware; and licenses proprietary table games content to commercial, tribal and governmental gaming operators. The SciPlay segment develops, markets, and operates social games on various mobile and web platforms, as well as other games in the hyper-casual space. It sells virtual coins, chips, or bingo cards, which players can use to play slot games, table games, or bingo games. The iGaming segment provides a suite of digital gaming content, distribution platforms, player account management systems, and other iGaming content and services. This segment also offers the Open Platform System, which offers a range of reporting and administrative functions and tools providing operators control over various areas of digital gaming operations. Light & Wonder, Inc. was incorporated in 1984 and is headquartered in Las Vegas, Nevada.