Financial Analysis: DATATRAK International (OTCMKTS:DTRK) and Clarivate (NYSE:CLVT)

DATATRAK International (OTCMKTS:DTRK) and Clarivate (NYSE:CLVT) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Risk and Volatility

DATATRAK International has a beta of 1.91, indicating that its stock price is 91% more volatile than the S&P 500. Comparatively, Clarivate has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500.

Profitability

This table compares DATATRAK International and Clarivate’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DATATRAK International	N/A	N/A	N/A
Clarivate	-34.66%	9.95%	3.89%

Insider & Institutional Ownership

85.7% of Clarivate shares are owned by institutional investors. 8.0% of DATATRAK International shares are owned by company insiders. Comparatively, 22.8% of Clarivate shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares DATATRAK International and Clarivate’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DATATRAK International	$5.93 million	0.05	-$890,000.00	N/A	N/A
Clarivate	$2.63 billion	1.77	-$911.20 million	($1.48)	-4.70

DATATRAK International has higher earnings, but lower revenue than Clarivate.

Analyst Ratings

This is a summary of recent recommendations for DATATRAK International and Clarivate, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DATATRAK International	0	0	0	0	N/A
Clarivate	3	3	3	0	2.00

Clarivate has a consensus price target of $8.00, suggesting a potential upside of 15.27%. Given Clarivate’s higher probable upside, analysts clearly believe Clarivate is more favorable than DATATRAK International.

Summary

Clarivate beats DATATRAK International on 8 of the 11 factors compared between the two stocks.

About DATATRAK International

DATATRAK International, Inc., a technology and services company, provides unified clinical solutions and related services for the clinical trials industry. The company offers DATATRAK ONE Unified Experience, a clinical enterprise solution that allows clinical users and service providers to design, deliver, and manage clinical trials. Its products include UX CTMS 360 for planning and managing trials; UX Trial to streamline design-to-deployment process using a tool; UX EDC & Medical Coding for capturing and delivering data; UX Randomization and Trial Supply Management to randomize patients and automate supply; UX Patient Data Capture; UX Safety; and UX Training to train users and track certificates. The company also provides DATATRAK Clinical Consulting Services, such as training, support, learning center, Software as a Service hosting, standards, and trial design services. It serves contract research organizations, pharma and biotech companies, and clinical trial device companies. DATATRAK International, Inc. was founded in 1991 and is headquartered in Mayfield Heights, Ohio.

About Clarivate

Clarivate Plc operates as an information services provider in the Americas, the Middle East, Africa, Europe, and the Asia Pacific. It operates through three segments: Academia & Government, Life Sciences & Healthcare, and Intellectual Property. The company offers Web of Science and InCites, that analyzes and explores the academic research landscape and manages research information; ProQuest One and Ebook Central that provides comprehensive content collections to institutions in a cost-effective manner; and Alma and Polaris, that manages academic resources and services, connect users, and support research publications. It also provides Patent and Trademark Renewals, that supports paralegal and admin tasks throughout the patent and trademark protection and maintenance process; CompuMark and Derwent, that supports critical decisions around patent and trademark protection, risk, and value creation throughout the innovation and brand lifecycle; IPFolio and Foundation IP that creates a structured environment for the protection and management of global patent and trademark assets. In addition, the company offers Cortellis Competitive Intelligence and Cortellis Drug Discovery Intelligence, that supports the development of new drugs and medical devices from discovery to clinical trials; Cortellis Regulatory Intelligence and OFF-X to monitor drug safety issues and adhere to regulatory protocols; Real World Data and Optimize that inform commercial launch strategy and set pricing for optimal reimbursement. It serves corporations, universities, law firms, government agencies, public libraries, and other professional services organizations. The company was formerly known as Clarivate Analytics Plc and changed its name to Clarivate Plc in May 2020. Clarivate Plc was founded in 1864 and is headquartered in London, the United Kingdom.