Quarterhill (OTCMKTS:QTRHF) and MGT Capital Investments (OTCMKTS:MGTI) are both small-cap business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Quarterhill and MGT Capital Investments, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Quarterhill 0 1 0 0 2.00
MGT Capital Investments 0 0 0 0 N/A

Quarterhill presently has a consensus price target of $2.40, suggesting a potential upside of 60.00%. Given Quarterhill’s higher possible upside, analysts plainly believe Quarterhill is more favorable than MGT Capital Investments.

Profitability

This table compares Quarterhill and MGT Capital Investments’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Quarterhill -11.31% -6.62% -5.54%
MGT Capital Investments -4,738.35% -1,216.60% -479.56%

Insider and Institutional Ownership

10.2% of Quarterhill shares are owned by institutional investors. Comparatively, 0.0% of MGT Capital Investments shares are owned by institutional investors. 3.8% of MGT Capital Investments shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Quarterhill and MGT Capital Investments’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Quarterhill $77.40 million 2.30 -$49.12 million ($0.24) -6.25
MGT Capital Investments $2.03 million 6.11 -$23.85 million N/A N/A

MGT Capital Investments has lower revenue, but higher earnings than Quarterhill.

Risk and Volatility

Quarterhill has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500. Comparatively, MGT Capital Investments has a beta of 3.34, indicating that its share price is 234% more volatile than the S&P 500.

Summary

Quarterhill beats MGT Capital Investments on 6 of the 10 factors compared between the two stocks.

Quarterhill Company Profile

Quarterhill Inc. focuses on acquisition and management of technology companies that provides products and services worldwide. Its Licensing segment includes patents relating to 3D television, semiconductor manufacturing and packaging, medical stent, intelligent personal assistant, enhanced image processing, streaming video, non-volatile flash and other memory, semiconductor clocking, LED lighting, and various other technologies; automotive headlight assemblies, phased loop semiconductor licensing, microcontrollers applicable to safety-critical aerospace, computer gaming, CMOS image sensors, building automation, and smart meter monitoring; and medical, industrial, and automotive applications. The company's Intelligent Systems segment provides integrated systems and solutions, such as automated truck weigh stations; toll road systems and equipment; traffic management and safety systems; VectorSense, a tire sensor suite; Vehicle Information-In-Motion, a traffic intelligence system; integrated traffic control systems; permanent and portable slow speed weigh-in-motion systems; portable wheel load scales; traffic data collection products; vehicle and axle detection equipment; and automated vehicle identification, and other hardware and software products for the intelligent transportation systems industry. This segment serves through direct salespeople, distributors, agents, other contractors, and systems integrators. Its Enterprise Software segment provides enterprise asset management software solutions to asset intensive industries through its salesforce over the Internet. Its offerings include WorkAlign, a product suite, which consists of integrated products, such as scheduler, IIoT, mobile for EAM, maintenance budgeting, warranty tracker, and analytics; and consulting services. The company was formerly known as Wi-LAN Inc. and changed its name to Quarterhill Inc. in June 2017. Quarterhill Inc. was incorporated in 1992 and is headquartered in Kitchener, Canada.

MGT Capital Investments Company Profile

MGT Capital Investments, Inc. engages in bitcoin mining operations in the Wenatchee Valley area of central Washington. At March 30, 2018, it owned and operated approximately 500 miners located in a leased facility in Quincy, Washington; and 4,200 miners located in a leased facility in Sweden, as well as operated approximately 2,100 miners in the Sweden location. The company was founded in 1979 and is headquartered in Durham, North Carolina.

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