Digital Turbine (NASDAQ:APPS) and Liberty Tax (OTCMKTS:TAXA) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, institutional ownership, risk and analyst recommendations.
Earnings & Valuation
This table compares Digital Turbine and Liberty Tax’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Digital Turbine||$74.75 million||3.00||-$52.85 million||($0.09)||-31.67|
|Liberty Tax||$174.87 million||0.96||$130,000.00||N/A||N/A|
Liberty Tax has higher revenue and earnings than Digital Turbine.
This table compares Digital Turbine and Liberty Tax’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings and target prices for Digital Turbine and Liberty Tax, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Digital Turbine presently has a consensus price target of $4.00, indicating a potential upside of 40.35%. Given Digital Turbine’s higher probable upside, research analysts plainly believe Digital Turbine is more favorable than Liberty Tax.
Institutional & Insider Ownership
21.5% of Digital Turbine shares are held by institutional investors. Comparatively, 3.7% of Liberty Tax shares are held by institutional investors. 6.2% of Digital Turbine shares are held by company insiders. Comparatively, 36.9% of Liberty Tax shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Risk and Volatility
Digital Turbine has a beta of 1.68, meaning that its share price is 68% more volatile than the S&P 500. Comparatively, Liberty Tax has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.
Liberty Tax pays an annual dividend of $0.32 per share and has a dividend yield of 2.7%. Digital Turbine does not pay a dividend.
Digital Turbine beats Liberty Tax on 7 of the 12 factors compared between the two stocks.
About Digital Turbine
Digital Turbine, Inc., through its subsidiaries, provides media and mobile communication solutions for mobile operators, application developers, device original equipment manufacturers, and other third parties worldwide. The company offers Ignite, a mobile application management software to control, manage, and monetize the applications that are installed on mobile devices and professional services directly related to the ignite platform. It also provides Discover software, which provides application installation and management, as well as detailed reporting to advertisers and carriers. In addition, the company offers other products and professional services directly related to the Ignite platform. Digital Turbine, Inc. is headquartered in Austin, Texas.
About Liberty Tax
Liberty Tax, Inc., through its subsidiaries, provides tax preparation services in the United States and Canada. The company also facilitates refund-based tax settlement financial products, such as refund transfer products and personal income tax refund discounting, as well as provides an online digital Do-It-Yourself tax program in the United States. Its customers include taxpayers who, for reasons of complexity, convenience, or the need for prompt tax refunds, seek assisted tax preparation services. The company offers its products and services through a network of company-owned offices and franchised locations under the Liberty Tax, Liberty Tax Service, Liberty Income Tax, Liberty Canada, and SiempreTax+ brand names. The company was formerly known as JTH Holding, Inc. and changed its name to Liberty Tax, Inc. in July 2014. Liberty Tax, Inc. was founded in 1996 and is headquartered in Virginia Beach, Virginia.
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