Reviewing PAR Technology (NYSE:PAR) & Docusign (NASDAQ:DOCU)

by · The Cerbat Gem

Docusign (NASDAQ:DOCU – Get Free Report) and PAR Technology (NYSE:PAR – Get Free Report) are both technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, earnings, valuation and dividends.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Docusign and PAR Technology, as reported by MarketBeat.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
Docusign115302.11
PAR Technology12502.50

Docusign presently has a consensus price target of $67.62, indicating a potential downside of 12.87%. PAR Technology has a consensus price target of $25.17, indicating a potential upside of 23.03%. Given PAR Technology’s stronger consensus rating and higher possible upside, analysts plainly believe PAR Technology is more favorable than Docusign.

Profitability

This table compares Docusign and PAR Technology’s net margins, return on equity and return on assets.

Net MarginsReturn on EquityReturn on Assets
Docusign9.82%18.29%8.42%
PAR Technology-12.24%-0.69%-0.41%

Valuation & Earnings

This table compares Docusign and PAR Technology”s gross revenue, earnings per share and valuation.

Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
Docusign$3.22 billion4.51$309.08 million$1.6447.32
PAR Technology$455.55 million1.86-$84.46 million($1.76)-11.62

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

Risk & Volatility

Docusign has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500. Comparatively, PAR Technology has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500.

Insider and Institutional Ownership

77.6% of Docusign shares are owned by institutional investors. 0.6% of Docusign shares are owned by company insiders. Comparatively, 2.3% of PAR Technology shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Docusign beats PAR Technology on 8 of the 13 factors compared between the two stocks.

About Docusign

(Get Free Report)

Docusign, Inc. provides electronic signature solution in the United States and internationally. The company provides e-signature solution that enables sending and signing of agreements on various devices; Contract Lifecycle Management (CLM), which automates workflows across the entire agreement process; Document Generation streamlines the process of generating new, custom agreements; and Gen for Salesforce, which allows sales representatives to automatically generate agreements with a few clicks from within Salesforce. It also provides Identify, a signer-identification option for checking government-issued IDs; Standards-Based Signatures, which support signatures that involve digital certificates; Monitor that uses advanced analytics to track Docusign eSignature web, mobile, and API account; Notary which enables notaries public to conduct remote online notarization transactions; and Web Forms, a web forms that quickly draft agreements using pre-populated data from completed forms or external systems via APIs. In addition, the company offers Rooms for Real Estate that provides a way for brokers and agents to manage the entire real estate transaction digitally. Signature and CLM are FedRAMP, an authorized version of Docusign eSignature for U.S. federal government agencies; and life sciences modules that support compliance with the electronic signature practices. The company sells its products through direct and partner-assisted sales, and digital self-service purchasing. Docusign, Inc. was incorporated in 2003 and is headquartered in San Francisco, California.

About PAR Technology

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PAR Technology Corporation, together with its subsidiaries, provides omnichannel cloud-based hardware and software solutions to the restaurant and retail industries worldwide. The Restaurant/Retail segment offers PUNCHH, an enterprise-grade customer loyalty and engagement solution; MENU, an eCommerce platform for restaurant brands; BRINK POS, an open cloud, point-of-sale solution; PAR PAYMENT SERVICES, a merchant services business that enables electronic payment and processing services for businesses; and DATA CENTRAL, a back-office solution that leverages business intelligence and automation technologies. This segment also offers Point-of-Sale Hardware; wireless headsets for drive-thru order-taking; and kitchen display systems, payment devices, cash drawers, printers, and other peripherals. In addition, this segment provides services, such as hardware repair, installation and implementation, training, and on-site and technical support services. The Government segment provides intelligence, surveillance, and reconnaissance solutions; mission systems operations and maintenance, and commercial software products; systems engineering support and software-based solutions; satellite and teleport facility operation and maintenance, engineering, and installation services comprising inside and outside plant services, and maintenance of infrastructure and information systems; satellite ground system support comprising operations and maintenance, sustainment, upgrades, communications security management, anomaly response/resolution, process improvement, emergency response, and disaster recovery services; and information technology infrastructure library services to the United States Department of Defense, intelligence community (IC), and other federal agencies. This segment also offers various IC support services, systems integration, situational awareness solutions, and mission readiness support services. The company was founded in 1968 and is based in New Hartford, New York.