Quarterhill (QTRH) vs. Patriot Scientific (PTSC) Critical Review

Quarterhill (NASDAQ:QTRH) and Patriot Scientific (OTCMKTS:PTSC) are both small-cap business services companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, dividends, valuation and profitability.

Profitability

This table compares Quarterhill and Patriot Scientific’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Quarterhill -55.70% -7.97% -6.79%
Patriot Scientific N/A -44.37% -43.11%

Risk & Volatility

Quarterhill has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500. Comparatively, Patriot Scientific has a beta of -0.39, indicating that its share price is 139% less volatile than the S&P 500.

Valuation & Earnings

This table compares Quarterhill and Patriot Scientific’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Quarterhill $134.71 million 0.94 $10.22 million $0.52 2.06
Patriot Scientific N/A N/A -$1.20 million N/A N/A

Quarterhill has higher revenue and earnings than Patriot Scientific.

Dividends

Quarterhill pays an annual dividend of $0.04 per share and has a dividend yield of 3.7%. Patriot Scientific does not pay a dividend. Quarterhill pays out 7.7% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Quarterhill and Patriot Scientific, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Quarterhill 0 0 1 0 3.00
Patriot Scientific 0 0 0 0 N/A

Quarterhill currently has a consensus target price of $2.00, suggesting a potential upside of 86.92%. Given Quarterhill’s higher probable upside, equities research analysts plainly believe Quarterhill is more favorable than Patriot Scientific.

Insider and Institutional Ownership

11.6% of Quarterhill shares are held by institutional investors. 1.0% of Patriot Scientific shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Quarterhill beats Patriot Scientific on 9 of the 12 factors compared between the two stocks.

Quarterhill Company Profile

Quarterhill Inc. focuses on acquisition and management of technology companies that provides products and services worldwide. Its Technology segment licenses patent technologies to approximately 355 companies. Its patent portfolios include patents relating to 3D television, phased loop semiconductor, semiconductor manufacturing and packaging, medical stent, intelligent personal assistant, streaming video, semiconductor clocking, LED lighting, smart meter monitoring, non-volatile flash memory and other memory, building automation, enhanced image processing, computer gaming, and various other technologies; automotive headlight assemblies, microcontrollers applicable to safety-critical aerospace, and CMOS image sensors; and medical, industrial, and automotive applications. Its Mobility segment provides automated truck weigh stations; toll road systems and equipment; traffic management and safety systems; VectorSense, a tire sensor suite; Vehicle Information-In-Motion, a traffic intelligence system; integrated traffic control systems; permanent and portable slow speed weigh-in-motion systems; portable wheel load scales; traffic data collection products; vehicle and axle detection equipment; and automated vehicle identification, and other hardware and software products. It serves intelligent transportation systems industry through salespeople, distributors, agents, other contractors, and systems integrators, as well as directly. Its Factory segment creates and licenses enterprise asset management (EAM) software solutions to asset intensive industries through its salesforce, as well as Internet. It offers WorkAlign, a product suite, which consists of integrated products, such as scheduler, IIoT, mobile for EAM, maintenance budgeting, warranty tracker, and analytics; and consulting services. The company was formerly known as Wi-LAN Inc. and changed its name to Quarterhill Inc. in June 2017. Quarterhill Inc. was incorporated in 1992 and is headquartered in Ottawa, Canada.

Patriot Scientific Company Profile

Patriot Scientific Corporation focuses on commercializing microprocessor technologies through broad and open licensing. The company was founded in 1987 and is based in Carlsbad, California.

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