Docusign (NASDAQ:DOCU – Get Free Report) and PAR Technology (NYSE:PAR – Get Free Report) are both technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Docusign and PAR Technology, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Docusign | 1 | 15 | 3 | 0 | 2.11 |
| PAR Technology | 1 | 2 | 5 | 0 | 2.50 |
Docusign currently has a consensus price target of $67.62, suggesting a potential downside of 15.63%. PAR Technology has a consensus price target of $25.28, suggesting a potential upside of 13.71%. Given PAR Technology’s stronger consensus rating and higher probable upside, analysts plainly believe PAR Technology is more favorable than Docusign.
Insider and Institutional Ownership
77.6% of Docusign shares are owned by institutional investors. 0.6% of Docusign shares are owned by insiders. Comparatively, 2.3% of PAR Technology shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Volatility and Risk
Docusign has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500. Comparatively, PAR Technology has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500.
Profitability
This table compares Docusign and PAR Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Docusign | 9.82% | 18.29% | 8.42% |
| PAR Technology | -12.24% | -0.69% | -0.41% |
Valuation & Earnings
This table compares Docusign and PAR Technology”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Docusign | $3.36 billion | 4.46 | $309.08 million | $1.64 | 48.87 |
| PAR Technology | $455.55 million | 2.02 | -$84.46 million | ($1.53) | -14.53 |
Docusign has higher revenue and earnings than PAR Technology. PAR Technology is trading at a lower price-to-earnings ratio than Docusign, indicating that it is currently the more affordable of the two stocks.
Summary
Docusign beats PAR Technology on 8 of the 13 factors compared between the two stocks.
About Docusign
DocuSign, Inc. provides software for preparing, signing, managing and automating agreements. Its platform helps businesses and individuals complete agreements digitally, reducing reliance on paper-based processes. The company’s offerings include DocuSign eSignature, which enables users to sign and request signatures electronically, as well as tools for contract lifecycle management and agreement workflows. Its Intelligent Agreement Management products use artificial intelligence to help organizations analyze and manage agreement-related information and processes.
About PAR Technology
PAR Technology Corporation provides technology products and services for restaurants and other foodservice businesses. Its offerings include point-of-sale systems, cloud-based software, payment solutions, digital ordering tools, and guest-engagement and loyalty programs designed to help businesses manage operations and customer interactions. The company’s portfolio includes Brink POS, a cloud-based point-of-sale platform, and Punchh, a guest engagement and loyalty platform. PAR also provides hardware and technology services, serving restaurant operators in the United States and international markets.
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