Exponent (NASDAQ: EXPO) and Acacia Research Corporation (NASDAQ:ACTG) are both small-cap business services companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, profitability, risk and dividends.
Volatility & Risk
Exponent has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500. Comparatively, Acacia Research Corporation has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500.
Exponent pays an annual dividend of $0.84 per share and has a dividend yield of 1.2%. Acacia Research Corporation does not pay a dividend. Exponent pays out 43.5% of its earnings in the form of a dividend.
This is a breakdown of current ratings for Exponent and Acacia Research Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Acacia Research Corporation||1||0||1||0||2.00|
Exponent currently has a consensus target price of $75.00, indicating a potential upside of 6.08%. Acacia Research Corporation has a consensus target price of $6.50, indicating a potential upside of 60.49%. Given Acacia Research Corporation’s higher possible upside, analysts plainly believe Acacia Research Corporation is more favorable than Exponent.
This table compares Exponent and Acacia Research Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Acacia Research Corporation||-25.64%||-1.06%||-0.95%|
Institutional & Insider Ownership
88.3% of Exponent shares are owned by institutional investors. Comparatively, 70.9% of Acacia Research Corporation shares are owned by institutional investors. 2.8% of Exponent shares are owned by insiders. Comparatively, 2.8% of Acacia Research Corporation 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.
Valuation and Earnings
This table compares Exponent and Acacia Research Corporation’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Exponent||$311.50 million||5.85||$71.89 million||$1.93||36.63|
|Acacia Research Corporation||$111.94 million||1.83||$13.80 million||($0.57)||-7.11|
Exponent has higher revenue and earnings than Acacia Research Corporation. Acacia Research Corporation is trading at a lower price-to-earnings ratio than Exponent, indicating that it is currently the more affordable of the two stocks.
Exponent beats Acacia Research Corporation on 10 of the 14 factors compared between the two stocks.
Exponent Company Profile
Exponent, Inc. (Exponent), along with its subsidiaries, is a science and engineering consulting company. Exponent provides engineering and scientific consulting services to clients around the world. Its service offerings are provided on a project-by-project basis. It operates in two segments: Engineering and Other Scientific, and Environmental and Health. Its Engineering and Other Scientific segment includes biomechanics, biomedical engineering, buildings and structures, civil engineering, construction consulting, materials and corrosion engineering, mechanical engineering, polymer science and materials chemistry, statistical and data sciences, thermal sciences and vehicle analysis services. Its Environmental and Health segment includes chemical regulation and food safety; ecological and biological sciences; environmental and earth sciences, and health sciences. Exponent serves clients in automotive, government, health, insurance, manufacturing and technology, among others.
Acacia Research Corporation Company Profile
Acacia Research Corporation, through its subsidiaries, invests in, licenses and enforces patented technologies. The Company’s operating subsidiaries partner with inventors and patent owners, applying their legal and technology expertise to patent assets to unlock the financial value in their patented inventions. The Company’s operating subsidiaries assist patent owners with the prosecution and development of their patent portfolios, the protection of their patented inventions from unauthorized use, the generation of licensing revenue from users of their patented technologies and, where necessary, with the enforcement against unauthorized users of their patented technologies through the filing of patent infringement litigation. The Company’s operating subsidiaries own or control the rights to multiple patent portfolios, which include the United States patents and certain foreign counterparts, covering technologies used in a range of industries.
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