Contrasting Mitek Systems (MITK) & Digital China (DCHIF)

Digital China (OTCMKTS:DCHIF) and Mitek Systems (NASDAQ:MITK) 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 institutional ownership, analyst recommendations, profitability, valuation, risk, earnings and dividends.

Risk and Volatility

Digital China has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500. Comparatively, Mitek Systems has a beta of -0.4, meaning that its share price is 140% less volatile than the S&P 500.

Valuation and Earnings

This table compares Digital China and Mitek Systems’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Digital China $1.58 billion 0.49 $50.14 million N/A N/A
Mitek Systems $63.56 million 6.32 -$11.80 million $0.13 79.77

Digital China has higher revenue and earnings than Mitek Systems.

Profitability

This table compares Digital China and Mitek Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Digital China N/A N/A N/A
Mitek Systems -11.79% 4.43% 3.36%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Digital China and Mitek Systems, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Digital China 0 0 0 0 N/A
Mitek Systems 0 0 2 0 3.00

Mitek Systems has a consensus target price of $17.00, indicating a potential upside of 63.93%. Given Mitek Systems’ higher possible upside, analysts clearly believe Mitek Systems is more favorable than Digital China.

Institutional & Insider Ownership

50.9% of Mitek Systems shares are owned by institutional investors. 8.2% of Mitek Systems shares are owned by 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

Mitek Systems beats Digital China on 7 of the 11 factors compared between the two stocks.

Digital China Company Profile

Digital China Holdings Limited, an investment holding company, provides information technology (IT) services primarily in Mainland China. It operates in three segments: DCITS, Supply Chain Services, and New Business. The company offers proprietary software, services, cloud computing, and big data analysis with the strategy of integrating [email protected] city and [email protected] agriculture. It also provides intermediary and backstage logistics services for corporate customers, e-commerce platforms, branded service providers, and individuals; and [email protected] city services for city administrators, enterprises, and citizens based on the urban information management center, integrated citizen service platform, integrated enterprise service platform, and integrated city administration platform, as well as financial services, such as financing, factoring, leasing, guarantee, etc. to third party customers. In addition, the company offers logistics, finance lease, data integration and management software sale, systems integration, application software development, maintenance and outsourcing, consultancy and training, financial specialized equipment sale, surveying service software, and network optimization services. Further, it holds trademarks; and develops and constructs science and technology parks. The company was incorporated in 2000 and is headquartered in Quarry Bay, Hong Kong.

Mitek Systems Company Profile

Mitek Systems, Inc. develops, markets, and sells mobile image capture and identity verification software solutions in the United States, Europe, Latin America, and internationally. The company's solutions are embedded in native mobile apps and mobile optimized Websites to enhance mobile user experiences, fraud detection and reduction, and compliant transactions. It offers Mobile Deposit that allows individuals and businesses to remotely deposit checks using their camera-equipped smartphone or tablet; and Mobile Verify, an identity verification solution that is integrated into mobile apps, mobile Websites, and desktop applications to verify people's identities at the point of onboarding through Web or mobile device. The company also provides Mobile Fill, a mobile identity capture solution to pre-fill forms with personal data by snapping a picture of the consumer's driver license, credit card, or other similar identity documents; Mobile Docs, a mobile document scanning solution; and MiSnap, a touch-free automated capture technology. In addition, it offers A2iA CheckReader that enables financial institutions to automatically extract data from checks; A2iA DocumentReader, a document classification and data extraction tool; A2iA TextReader that enables text transcription for printed and cursive handwritten text recognition; and ID_CLOUD, an automated identity verification solution that is integrated into a customers' application to read and validate identity documents. The company sells its solutions primarily to banks, credit unions, lenders, payments processers, card issuers, fintech companies, etc. through direct sales teams and channel partners. Mitek Systems, Inc. was founded in 1983 and is based in San Diego, California.

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