DHI Group (NYSE:DHX – Get Free Report) and Tucows (NASDAQ:TCX – Get Free Report) 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 earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.
Risk & Volatility
DHI Group has a beta of 1.53, indicating that its share price is 53% more volatile than the S&P 500. Comparatively, Tucows has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and price targets for DHI Group and Tucows, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
DHI Group | 1 | 1 | 2 | 1 | 2.60 |
Tucows | 1 | 0 | 0 | 0 | 1.00 |
Profitability
This table compares DHI Group and Tucows’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
DHI Group | -6.97% | 9.02% | 4.54% |
Tucows | -25.99% | N/A | -9.05% |
Insider and Institutional Ownership
69.3% of DHI Group shares are held by institutional investors. Comparatively, 73.6% of Tucows shares are held by institutional investors. 13.4% of DHI Group shares are held by company insiders. Comparatively, 9.4% of Tucows shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares DHI Group and Tucows”s gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
DHI Group | $141.93 million | 0.89 | $250,000.00 | ($0.21) | -12.57 |
Tucows | $362.27 million | 0.55 | -$109.86 million | ($8.92) | -2.03 |
DHI Group has higher earnings, but lower revenue than Tucows. DHI Group is trading at a lower price-to-earnings ratio than Tucows, indicating that it is currently the more affordable of the two stocks.
Summary
DHI Group beats Tucows on 12 of the 15 factors compared between the two stocks.
About DHI Group
DHI Group, Inc. provides data, insights, and employment connections through specialized services for technology professionals and other select online communities in the United States. Its solutions include talent profiles; job postings; employer branding; and other services comprising virtual and live career events, sourcing services, and content and data services that provides tailored content to help professionals manage their careers and provide employers insight into recruiting strategies and trends. The company operates Dice that offers job postings of technology and non-technology companies for industries, such as positions for software engineers, big data professionals, systems administrators, database specialists, project managers, and various other technology and engineering professionals; and ClearanceJobs, an online career community, which matches security-cleared professionals with employers in a secure and private environment to fill the jobs that safeguard its nation. It serves small, mid-sized, and large direct employers; staffing companies; recruiting agencies; staffing and consulting firms; and marketing departments of companies, as well as direct hiring companies. The company offers its products and services primarily through its direct sales force and agency partner channel. The company was formerly known as Dice Holdings, Inc. and changed its name to DHI Group, Inc. in April 2015. DHI Group, Inc. was founded in 1990 and is headquartered in Centennial, Colorado.
About Tucows
Tucows Inc. provides network access, domain name registration, email, mobile telephony, and other Internet services in North America and Europe. It operates in three segments: Ting, Wavelo and Tucows Domains. The Ting segment provides fiber and fixed wireless internet services. The Wavelo segment offers individual developer tools, subscription, billing management, network orchestration, and provisioning services. This segment also provides billing solutions under Platypus brand. The Tucows Domains segment offers name registration, as well as value added services under OpenSRS, eNom, Ascio, EPAG, and Hover brands. The company was formerly known as Infonautics, Inc. and changed its name to Tucows Inc. in August 2001. Tucows Inc. was incorporated in 1992 and is headquartered in Toronto, Canada.
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