Financial Review: Applied Digital (NASDAQ:APLD) & DATATRAK International (OTCMKTS:DTRK)

DATATRAK International (OTCMKTS:DTRK) and Applied Digital (NASDAQ:APLD) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, earnings, dividends and risk.

Profitability

This table compares DATATRAK International and Applied Digital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DATATRAK International	N/A	N/A	N/A
Applied Digital	-61.84%	-75.46%	-20.50%

Risk and Volatility

DATATRAK International has a beta of 3.25, meaning that its stock price is 225% more volatile than the S&P 500. Comparatively, Applied Digital has a beta of 4.38, meaning that its stock price is 338% more volatile than the S&P 500.

Earnings and Valuation

This table compares DATATRAK International and Applied Digital’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DATATRAK International	$6.18 million	0.30	$2.66 million	N/A	N/A
Applied Digital	$143.91 million	5.75	-$44.65 million	($0.79)	-7.63

DATATRAK International has higher earnings, but lower revenue than Applied Digital.

Institutional & Insider Ownership

65.7% of Applied Digital shares are owned by institutional investors. 8.0% of DATATRAK International shares are owned by company insiders. Comparatively, 20.5% of Applied Digital shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for DATATRAK International and Applied Digital, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DATATRAK International	0	0	0	0	N/A
Applied Digital	0	0	5	0	3.00

Applied Digital has a consensus price target of $8.00, indicating a potential upside of 32.67%. Given Applied Digital’s higher probable upside, analysts plainly believe Applied Digital is more favorable than DATATRAK International.

Summary

Applied Digital beats DATATRAK International on 7 of the 11 factors compared between the two stocks.

About DATATRAK International

DATATRAK International, Inc., a technology and services company, provides unified clinical solutions and related services for the clinical trials industry. The company offers DATATRAK ONE Unified Experience, a clinical enterprise solution that allows clinical users and service providers to design, deliver, and manage clinical trials. Its products include UX CTMS 360 for planning and managing trials; UX Trial to streamline design-to-deployment process using a tool; UX EDC & Medical Coding for capturing and delivering data; UX Randomization and Trial Supply Management to randomize patients and automate supply; UX Patient Data Capture; UX Safety; and UX Training to train users and track certificates. The company also provides DATATRAK Clinical Consulting Services, such as training, support, learning center, Software as a Service hosting, standards, and trial design services. It serves contract research organizations, pharma and biotech companies, and clinical trial device companies. DATATRAK International, Inc. was founded in 1991 and is headquartered in Mayfield Heights, Ohio.

About Applied Digital

Applied Digital Corporation designs, develops, and operates datacenters in North America. Its datacenters provide digital infrastructure solutions to the high-performance computing industry. The company also provides artificial intelligence cloud services, high performance computing datacenter hosting, and crypto datacenter hosting services. The company was formerly known as Applied Blockchain, Inc. and changed its name to Applied Digital Corporation in November 2022. Applied Digital Corporation is based in Dallas, Texas.