Brand Engagement Network (NASDAQ:BNAI) versus Digimarc (NASDAQ:DMRC) Critical Analysis

Digimarc (NASDAQ:DMRC) and Brand Engagement Network (NASDAQ:BNAI) are both small-cap industrial products companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Profitability

This table compares Digimarc and Brand Engagement Network’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Digimarc	-114.38%	-46.01%	-36.78%
Brand Engagement Network	N/A	N/A	-28.36%

Volatility & Risk

Digimarc has a beta of 1.73, meaning that its stock price is 73% more volatile than the S&P 500. Comparatively, Brand Engagement Network has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Digimarc and Brand Engagement Network, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Digimarc	0	1	1	0	2.50
Brand Engagement Network	0	0	1	0	3.00

Digimarc currently has a consensus target price of $34.00, indicating a potential upside of 23.55%. Brand Engagement Network has a consensus target price of $6.00, indicating a potential upside of 224.32%. Given Brand Engagement Network’s stronger consensus rating and higher possible upside, analysts plainly believe Brand Engagement Network is more favorable than Digimarc.

Earnings and Valuation

This table compares Digimarc and Brand Engagement Network’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Digimarc	$38.60 million	15.24	-$45.96 million	($2.08)	-13.23
Brand Engagement Network	$35,210.00	1,750.80	-$6.88 million	N/A	N/A

Brand Engagement Network has lower revenue, but higher earnings than Digimarc.

Institutional and Insider Ownership

66.8% of Digimarc shares are owned by institutional investors. Comparatively, 15.8% of Brand Engagement Network shares are owned by institutional investors. 19.3% of Digimarc shares are owned by company insiders. Comparatively, 62.9% of Brand Engagement Network shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Brand Engagement Network beats Digimarc on 8 of the 11 factors compared between the two stocks.

About Digimarc

Digimarc Corporation, together with its subsidiaries, provides automatic identification solutions to commercial and government customers in the United States and internationally. The company offers Digimarc Validate protects, a cloud-based record of product authentication information; Digimarc Engage, an interactive communications channel connecting brands and consumers; and Digimarc Recycle. Its solutions are used in various application solutions, such as sorting of consumer-packaged goods in recycling streams. The company offers its solutions through its sales personnel and business partners. Digimarc Corporation was incorporated in 2008 and is based in Beaverton, Oregon.

About Brand Engagement Network

Brand Engagement Network, Inc. provides conversational AI assistants. The company offers security-focused, multimodal communication, and human-like assistants. Its AI assistants are built on proprietary natural language processing, anomaly detection, multisensory awareness, sentiment, and environmental analysis, as well as real-time individuation and personalization capabilities. It serves the automotive, healthcare, and other industries through direct sales force and channel partners. Brand Engagement Network, Inc. was formerly known as Blockchain Exchange Network Inc. and changed its name to Brand Engagement Network, Inc. in April 2023. The company was founded in 2018 and is based in Jackson, Wyoming.