Financial Comparison: DATATRAK International (DTRK) and Verisk Analytics (NASDAQ:VRSK)

Verisk Analytics (NASDAQ:VRSK) and DATATRAK International (OTCMKTS:DTRK) are both business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.

Profitability

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

Net Margins Return on Equity Return on Assets
Verisk Analytics 24.60% 33.36% 11.69%
DATATRAK International 5.75% 104.37% 8.75%

Valuation and Earnings

This table compares Verisk Analytics and DATATRAK International’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Verisk Analytics $2.40 billion 9.61 $598.70 million $4.11 34.23
DATATRAK International $7.45 million 1.81 $160,000.00 N/A N/A

Verisk Analytics has higher revenue and earnings than DATATRAK International.

Dividends

Verisk Analytics pays an annual dividend of $0.25 per share and has a dividend yield of 0.2%. DATATRAK International does not pay a dividend. Verisk Analytics pays out 6.1% of its earnings in the form of a dividend.

Institutional & Insider Ownership

92.7% of Verisk Analytics shares are owned by institutional investors. 2.7% of Verisk Analytics shares are owned by company insiders. Comparatively, 8.0% of DATATRAK International shares are owned 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.

Risk and Volatility

Verisk Analytics has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500. Comparatively, DATATRAK International has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Verisk Analytics and DATATRAK International, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Verisk Analytics 1 6 3 0 2.20
DATATRAK International 0 0 0 0 N/A

Verisk Analytics presently has a consensus target price of $130.50, indicating a potential downside of 7.24%. Given Verisk Analytics’ higher probable upside, research analysts plainly believe Verisk Analytics is more favorable than DATATRAK International.

Summary

Verisk Analytics beats DATATRAK International on 11 of the 14 factors compared between the two stocks.

Verisk Analytics Company Profile

Verisk Analytics, Inc. provides data analytics solutions in the United States and internationally. It provides predictive analytics and decision support solutions to customers in rating, underwriting, claims, catastrophe and weather risk, natural resources intelligence, economic forecasting, and various other fields. The company operates through three segments: Insurance, Energy and Specialized Markets, and Financial Services. The Insurance segment focuses on the prediction of loss, selection and pricing of risk, and compliance with their reporting requirements for property and casualty customers. It also develops predictive models to forecast scenarios and produce standard and customized analytics that help its customers to manage their businesses, including detecting fraud before and after a loss event, and quantifying losses. The Energy and Specialized Markets segment provides data analytics for the natural resources value chain, including energy, chemicals, metals, mining, power, and renewables sectors; research and consulting services focusing on exploration strategies and screening, asset development and acquisition, commodity markets, and corporate analysis; and consultancy services in the areas of business environment, business improvement, business strategies, commercial advisory, and transaction support, as well as analysis and advice on assets, companies, governments, and markets. The Financial Services segment offers algorithms, business intelligence, and customized analytic services to financial institutions, payment networks and processors, alternative lenders, regulators, and merchants. The company was founded in 1971 and is headquartered in Jersey City, New Jersey.

DATATRAK International Company Profile

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.

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