Pendrell (OTCMKTS:PCOA) and Acacia Research (NASDAQ:ACTG) are both small-cap business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.
Earnings and Valuation
This table compares Pendrell and Acacia Research's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Pendrell | N/A | N/A | N/A | N/A | N/A |
Acacia Research | $11.25 million | 26.11 | $-17,110,000.00 | N/A | N/A |
Pendrell has higher earnings, but lower revenue than Acacia Research.
Volatility and Risk
Pendrell has a beta of -0.42, meaning that its stock price is 142% less volatile than the S&P 500. Comparatively, Acacia Research has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500.
Profitability
This table compares Pendrell and Acacia Research's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Pendrell | N/A | N/A | N/A |
Acacia Research | 94.66% | -2.86% | -1.61% |
Analyst Ratings
This is a breakdown of current recommendations for Pendrell and Acacia Research, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Pendrell | 0 | 0 | 0 | 0 | N/A |
Acacia Research | 0 | 0 | 1 | 0 | 3.00 |
Acacia Research has a consensus target price of $5.00, indicating a potential downside of 16.11%. Given Acacia Research's higher probable upside, analysts plainly believe Acacia Research is more favorable than Pendrell.
Institutional & Insider Ownership
60.6% of Acacia Research shares are held by institutional investors. 41.5% of Pendrell shares are held by company insiders. Comparatively, 4.9% of Acacia Research shares are held by company 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.
Summary
Acacia Research beats Pendrell on 6 of the 9 factors compared between the two stocks.