Critical Comparison: Determine (DTRM) versus Top Image Systems (NASDAQ:TISA)

Top Image Systems (NASDAQ: TISA) and Determine (NASDAQ:DTRM) are both small-cap technology companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, institutional ownership, analyst recommendations and risk.

Profitability

This table compares Top Image Systems and Determine’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Top Image Systems -30.77% -50.20% -24.46%
Determine -30.59% -84.76% -14.85%

Institutional and Insider Ownership

5.4% of Top Image Systems shares are owned by institutional investors. Comparatively, 17.5% of Determine shares are owned by institutional investors. 10.0% of Determine shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Top Image Systems and Determine’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Top Image Systems $31.64 million 0.61 -$6.61 million ($0.51) -2.10
Determine $27.46 million 0.84 -$9.45 million ($0.65) -2.38

Top Image Systems has higher revenue and earnings than Determine. Determine is trading at a lower price-to-earnings ratio than Top Image Systems, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Top Image Systems has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500. Comparatively, Determine has a beta of 1.49, meaning that its stock price is 49% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Top Image Systems and Determine, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Top Image Systems 0 1 2 0 2.67
Determine 1 0 2 0 2.33

Top Image Systems currently has a consensus price target of $2.50, suggesting a potential upside of 133.64%. Determine has a consensus price target of $3.00, suggesting a potential upside of 93.55%. Given Top Image Systems’ stronger consensus rating and higher possible upside, research analysts plainly believe Top Image Systems is more favorable than Determine.

Summary

Top Image Systems beats Determine on 7 of the 13 factors compared between the two stocks.

About Top Image Systems

Top Image Systems Ltd. (TIS) is a developer and marketer of intelligent content capture and workflow automation solutions for managing and validating incoming content in any format from any source. The Company’s solutions deliver digital content to the people and applications that drive an enterprise by using advanced network, mobile and cloud technologies. Its products integrate information regardless of the source and format of the data, whether structured, as in the case of application forms or surveys, or semi-structured, such as invoices, purchase orders, checks, freight and shipping bills, and others or unstructured. Its software minimizes the need for manual data entry by automatically capturing, reading, understanding, identifying, processing, classifying and routing the information contained in documents. Its mobiFLOW software development kit (SDK) is a multi-purpose mobile capture and processing platform that enables capture of any document of any size using a mobile device.

About Determine

Determine, Inc., (Determine), formerly Selectica, Inc., is a provider of enterprise contract management, supply management and configuration solutions. The Company is engaged in providing software as a service (SaaS) Source to Pay and Enterprise Contract Lifecyclem Management (ECLM) solutions. Its Source to Pay software suite includes strategic sourcing, supplier management, contract management and procure-to-pay applications. The Determine Cloud Platform gives procurement, finance and legal professionals the ability to deliver insights through analysis of their supplier relationships and contractual requirements. The Determine platform is an open technology infrastructure based on smart process application models. In addition to its source to pay and enterprise contract lifecycle management solutions suite, Determine also provides a configuration engine solution. The Company’s Configuration engine consolidates the management and dissemination of complex product information.

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