Analyzing TSR (NASDAQ:TSRI) & Monotype Imaging (TYPE)

TSR (NASDAQ:TSRI) and Monotype Imaging (NASDAQ:TYPE) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, risk, earnings and analyst recommendations.

Institutional & Insider Ownership

9.6% of TSR shares are owned by institutional investors. Comparatively, 91.8% of Monotype Imaging shares are owned by institutional investors. 0.9% of TSR shares are owned by company insiders. Comparatively, 3.4% of Monotype Imaging shares are owned 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.

Valuation and Earnings

This table compares TSR and Monotype Imaging’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TSR $64.99 million 0.15 $480,000.00 N/A N/A
Monotype Imaging $246.74 million 3.42 $12.27 million $0.78 26.09

Monotype Imaging has higher revenue and earnings than TSR.

Dividends

Monotype Imaging pays an annual dividend of $0.46 per share and has a dividend yield of 2.3%. TSR does not pay a dividend. Monotype Imaging pays out 59.0% of its earnings in the form of a dividend. Monotype Imaging has raised its dividend for 6 consecutive years.

Risk and Volatility

TSR has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500. Comparatively, Monotype Imaging has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for TSR and Monotype Imaging, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TSR 0 0 0 0 N/A
Monotype Imaging 0 1 1 0 2.50

Monotype Imaging has a consensus target price of $31.00, indicating a potential upside of 52.33%. Given Monotype Imaging’s higher possible upside, analysts plainly believe Monotype Imaging is more favorable than TSR.

Profitability

This table compares TSR and Monotype Imaging’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TSR -0.93% -7.42% -4.55%
Monotype Imaging 4.89% 9.70% 6.33%

Summary

Monotype Imaging beats TSR on 12 of the 14 factors compared between the two stocks.

TSR Company Profile

TSR, Inc. provides contract computer programming services in the New York metropolitan area, New England, and the Mid-Atlantic region. It offers technical computer personnel to supplement the in-house information technology capabilities of its customers in the areas of .net and java application development, android and IOS mobile application platform development, project management, IT security, cloud development and architecture, UI design and development, network infrastructure and support, and database development and administration, as well as provides business analysts. The company primarily serves vendor management companies, as well as customers in the financial services business. TSR, Inc. was founded in 1969 and is based in Hauppauge, New York.

Monotype Imaging Company Profile

Monotype Imaging Holdings Inc. develops, markets, and licenses technologies and fonts in the United States, the United Kingdom, Germany, Japan, and rest of Asia. The company offers font products, including its own fonts from the Monotype Libraries, as well as fonts from third parties through its e-commerce Websites, including myfonts.com, fonts.com, fontshop.com, and linotype.com. It also provides font scaling engine and font compression technologies that are compatible with virtually font formats and industry standards, including the PostScript and PCL printing languages; font solutions for consumer device manufacturers, including Edge and SmartHint technologies for precise pixel adjustments to enable fonts to display with optimal quality in suboptimal display environments; printer driver kits; and fonts for printer manufacturers. In addition, the company offers screen imaging technologies; a mobile engagement platform that enables brands and advertisers to create and distribute branded content; brand engagement and social endorsement technologies through mobile and digital channels; and various tools to enhance user experiences. Further, it provides expert consultation and custom type design services; and technology support and professional services. The company provides approximately 14,000 typeface designs, and supports approximately 250 Latin and non-Latin languages. Its solutions are used in various devices, including laser printers, digital copiers, mobile phones, automotive displays, navigation devices, e-book readers, tablets, digital cameras, digital televisions, set-top boxes, consumer appliances, and Internet of things devices, as well as in various software applications and operating systems. The company serves content creators, marketers, consumer device manufacturers, and independent software vendors and developers. Monotype Imaging Holdings Inc. is headquartered in Woburn, Massachusetts.

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