Financial Analysis: CAPITA (OTCMKTS:CTAGY) versus Acacia Research (NASDAQ:ACTG)

Risk & Volatility

CAPITA has a beta of -0.26, suggesting that its stock price is 126% less volatile than the S&P 500. Comparatively, Acacia Research has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500.

Valuation & Earnings

This table compares CAPITA and Acacia Research”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CAPITA	$3.09 billion	0.13	$98.01 million	N/A	N/A
Acacia Research	$122.31 million	2.94	-$36.06 million	($0.11)	-34.00

CAPITA has higher revenue and earnings than Acacia Research.

Insider & Institutional Ownership

86.7% of Acacia Research shares are owned by institutional investors. 1.1% of Acacia Research shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares CAPITA and Acacia Research’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CAPITA	N/A	N/A	N/A
Acacia Research	-5.21%	2.09%	1.60%

Summary

Acacia Research beats CAPITA on 6 of the 9 factors compared between the two stocks.

About CAPITA

Capita plc provides consulting, digital, and software products and services to clients in the private and public sectors in the United Kingdom and internationally. It operates in two divisions: Public Service and Capita Experience divisions. The company offers solutions for finance and accounting, procurement, property and infrastructure, travel and event, and workplace administration. It also provides customer experience transformation, contact management, collection and debt management, complaint handling, customer experience system and software, acquisition and retention, and data and analytics. In addition, the company offers licensing and support, support, digital policing, and engineering practice; learning and development services; education service and local education authority software; solutions for central and local government services; and business process services. Further, it provides pension administration and software, pensions consulting, and data solutions; finance software, automation, and management information systems solutions; cloud, cyber security, digital connectivity, IT services, robotic process automation, and workplace IT solutions; and actuarial, defence, financial, healthcare, housing, legal, public safety, retail, retail banking, utility, and welfare and employability services. The company was formerly known as The Capita Group plc and changed its name to Capita plc in January 2012. Capita plc was founded in 1984 and is based in London, the United Kingdom.

About Acacia Research

Acacia is a publicly traded (Nasdaq: ACTG) company that is focused on acquiring and operating businesses across the industrial, energy and technology sectors where it believes it can leverage its expertise, significant capital base, and deep industry relationships to drive value. Acacia evaluates opportunities based on the attractiveness of the underlying cash flows, without regard to a specific investment horizon. Acacia operates its businesses based on three key principles of people, process, and performance and has built a management team with demonstrated expertise in research, transactions and execution, and operations and management.