Analyzing Quarterhill (OTCMKTS:QTRHF) & Royalty Management (NASDAQ:RMCO)

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Quarterhill and Royalty Management, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Quarterhill	0	0	0	0	N/A
Royalty Management	0	0	0	0	N/A

Quarterhill currently has a consensus target price of $4.00, indicating a potential upside of 220.00%. Given Quarterhill’s higher possible upside, equities analysts clearly believe Quarterhill is more favorable than Royalty Management.

Earnings & Valuation

This table compares Quarterhill and Royalty Management’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Quarterhill	$235.13 million	0.61	$2.13 million	($0.45)	-2.78
Royalty Management	N/A	N/A	$3.89 million	N/A	N/A

Royalty Management has lower revenue, but higher earnings than Quarterhill.

Profitability

This table compares Quarterhill and Royalty Management’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Quarterhill	-36.41%	-21.73%	-13.41%
Royalty Management	N/A	-4.91%	3.21%

Volatility & Risk

Quarterhill has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500. Comparatively, Royalty Management has a beta of 0.14, indicating that its share price is 86% less volatile than the S&P 500.

Insider and Institutional Ownership

52.0% of Royalty Management shares are owned by institutional investors. 19.8% of Royalty Management shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Royalty Management beats Quarterhill on 6 of the 9 factors compared between the two stocks.

About Quarterhill

Quarterhill Inc., together with its subsidiaries, operates in intelligent transportation system and intellectual property licensing industries worldwide. Its Intellectual Property Licensing segment includes patents relating to wireless communications, memory interface technologies, semiconductor manufacturing and packaging technologies, wired connectivity, automotive applications, computer gaming, intelligent personal assistant technologies, enhanced image processing, streaming video technologies, non-volatile Flash memory, DRAM and other memory technologies, and semiconductor analog circuitry technologies. The company's Intelligent Transportation Systems segment provides riteSuite which offers mobility solutions, such as all-electronic tolling, dynamic pricing, agency interoperability, hosted mobility solutions, and machine learning; back-office solutions, which offers account management, customer service, violation processing, and technical services; roadside solutions, which offers onsite and remote maintenance and field operations services, including tolling facility support, lane equipment control, and cash management services; international road dynamics products and services, which offers red light and speed enforcement systems, 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 services and equipment, and other hardware and software products and offerings for the intelligent transportation systems industry. The company was formerly known as Wi-LAN Inc. and changed its name to Quarterhill Inc. in June 2017. The company was incorporated in 1992 and is headquartered in Toronto, Canada.

About Royalty Management

American Acquisition Opportunity Inc. entered into a definitive merger agreement with Heart Water.