Comparing Epson (SEKEY) and Mitek Systems (MITK)

Epson (OTCMKTS: SEKEY) and Mitek Systems (NASDAQ:MITK) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, dividends, risk, valuation, earnings and institutional ownership.

Profitability

This table compares Epson and Mitek Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Epson 3.31% 6.97% 3.51%
Mitek Systems 12.89% 6.68% 5.47%

Dividends

Epson pays an annual dividend of $0.09 per share and has a dividend yield of 1.0%. Mitek Systems does not pay a dividend. Epson pays out 14.5% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current recommendations and price targets for Epson and Mitek Systems, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Epson 0 0 0 0 N/A
Mitek Systems 0 0 4 0 3.00

Mitek Systems has a consensus price target of $12.25, indicating a potential upside of 42.44%. Given Mitek Systems’ higher probable upside, analysts clearly believe Mitek Systems is more favorable than Epson.

Valuation & Earnings

This table compares Epson and Mitek Systems’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Epson $9.14 billion 0.81 $430.69 million $0.62 14.85
Mitek Systems $45.39 million 6.64 $14.09 million $0.21 40.95

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

Volatility & Risk

Epson has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500. Comparatively, Mitek Systems has a beta of 0.44, meaning that its stock price is 56% less volatile than the S&P 500.

Institutional and Insider Ownership

0.1% of Epson shares are owned by institutional investors. Comparatively, 46.4% of Mitek Systems shares are owned by institutional investors. 8.5% of Mitek Systems shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Mitek Systems beats Epson on 8 of the 14 factors compared between the two stocks.

Epson Company Profile

Seiko Epson Corporation, together with its subsidiaries, develops, manufactures, sells, and provides services for products in the printing solutions, visual communications, wearable and industrial products, and other businesses in Japan, the United States, China, and internationally. Its Printing Solutions segment provides inkjet printers, serial impact dot matrix printers, page printers, color image scanners, large-format inkjet printers, industrial inkjet printing systems, printers for use in POS systems, label printers and related consumables, office papermaking systems, personal computers, and others. The company's Visual Communications segment develops, manufactures, and sells 3LCD projectors for business, education, and the home markets; high-temperature polysilicon TFT LCD panels for 3LCD projectors; and smart eyewear. Its Wearable & Industrial Products segment offers watches and watch movements; sensing systems and equipment; built-in sensors used in the personal health and sports fields, etc.; industrial robots and other production systems; and electronic devices. This segment also designs, manufactures, and sells electronic devices, such as crystal units, crystal oscillators, and quartz sensors for consumer, automotive, and industrial equipment applications; and CMOS LSIs and other chips primarily for consumer electronics and automotive applications, as well as provides metal powders and surface finishing services. Seiko Epson Corporation was founded in 1942 and is headquartered in Suwa, Japan.

Mitek Systems Company Profile

Mitek Systems, Inc. develops, markets, and sells mobile image capture and identity verification software solutions for enterprise customers worldwide. The company's solutions are embedded in native mobile apps and mobile optimized Websites to enhance mobile user experiences and transactions. It offers Mobile Deposit that allows individuals and businesses to remotely deposit checks using their camera-equipped smartphone or tablet; Mobile Verify, an identity verification solution that can be integrated into mobile apps, mobile Websites, and desktop applications; Mobile Fill to pre-fill forms with personal data by simply snapping a picture of the consumer's driver license, credit card, or other document; Mobile Docs, a mobile document scanning solution; and MiSnap Multi-Check Capture, a software development kit that banks embed in their business banking app that facilitates capture of various checks in one deposit session. The company markets and sells its solutions primarily to banks, credit unions, lenders, payments processers, card issuers, insurers, etc. through direct sales teams and channel partners. Mitek Systems, Inc. was founded in 1983 and is headquartered in San Diego, California.

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