Comparing Verint Systems (VRNT) and VASCO Data Security International (VDSI)

Verint Systems (NASDAQ: VRNT) and VASCO Data Security International (NASDAQ:VDSI) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, institutional ownership, profitability, valuation, analyst recommendations, risk and dividends.

Insider and Institutional Ownership

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94.7% of Verint Systems shares are held by institutional investors. Comparatively, 55.1% of VASCO Data Security International shares are held by institutional investors. 1.4% of Verint Systems shares are held by company insiders. Comparatively, 22.5% of VASCO Data Security International shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Verint Systems and VASCO Data Security International’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Verint Systems	$1.14 billion	2.48	-$6.62 million	$1.77	24.89
VASCO Data Security International	$193.29 million	4.30	-$22.39 million	$0.43	47.91

Verint Systems has higher revenue and earnings than VASCO Data Security International. Verint Systems is trading at a lower price-to-earnings ratio than VASCO Data Security International, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings for Verint Systems and VASCO Data Security International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Verint Systems	0	2	3	0	2.60
VASCO Data Security International	0	1	2	0	2.67

Verint Systems currently has a consensus target price of $48.00, suggesting a potential upside of 8.97%. VASCO Data Security International has a consensus target price of $18.50, suggesting a potential downside of 10.19%. Given Verint Systems’ higher probable upside, equities analysts clearly believe Verint Systems is more favorable than VASCO Data Security International.

Profitability

This table compares Verint Systems and VASCO Data Security International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Verint Systems	-0.58%	10.57%	4.60%
VASCO Data Security International	-10.76%	6.71%	5.06%

Risk & Volatility

Verint Systems has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500. Comparatively, VASCO Data Security International has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500.

Summary

Verint Systems beats VASCO Data Security International on 8 of the 14 factors compared between the two stocks.

About Verint Systems

Verint Systems Inc. provides actionable intelligence solutions and value-added services worldwide. Its Customer Engagement Solutions segment provides automated quality management, automated verification, branch surveillance and investigation, case management, chat engagement, coaching/learning, compliance recording, customer communities, desktop and process analytics, digital feedback, email engagement, employee desktop, enterprise feedback, financial compliance, full-time recording, gamification, identity analytics, internal communities, knowledge management, mobile workforce, performance management, robotic process automation, social analytics, speech and text analytics, virtual assistant, voice self-service, voice self-service fraud detection, Web/mobile self-service, work manager, and workforce management solutions. The company's Cyber Intelligence Solutions segment offers cyber security solutions; intelligence fusion center and Web and social intelligence software that enables collection, fusion, and analysis of data from the Web; network intelligence suite, which generates critical intelligence of data captured from various network and open sources; and situational intelligence software enables security organizations to fuse, analyze, and report information, as well as take action on risks, alarms, and incidents. The company also offers a range of customer services, including implementation and training, consulting and managed, and maintenance support services. It sells its solutions through its direct sales team; and through indirect channels, such as distributors, systems integrators, value-added resellers, and original equipment manufacturer partners. The company was founded in 1994 and is headquartered in Melville, New York.

About VASCO Data Security International

VASCO Data Security International, Inc., together with its subsidiaries, designs, develops, and markets digital solutions for identity, security, and business productivity worldwide. The company offers DIGIPASS software authenticators; DIGIPASS for Apps, a software development kit; DIGIPASS for Mobile, a mobile authenticator that operates as a discrete mobile application; IDENTIKEY Risk Manager, an anti-fraud solution; and application shielding with runtime application self-protection that neutralizes the threat of attacks on mobile apps. It also provides eSignLive eSignature solution; and eSignLive eVault Manager, a Web-based platform that provides mortgage lenders, auto financers, equipment lessors, and other financial services organizations the means to store, assign, and service electronic mortgage notes, and secured loans and leases. In addition, the company offers VACMAN solutions; DIGIPASS hardware authenticators to support authentication and digital signatures for applications running on desktop PCs, laptops, tablets, and smart phones; and IDENTIKEY Authentication Server, an authentication server that supports the deployment, use, and administration of DIGIPASS strong user authentication. It sells its products to financial institutions, businesses, and government organizations through direct sales force, distributors, resellers, systems integrators, and original equipment manufacturers. VASCO Data Security International, Inc. was founded in 1991 and is headquartered in Chicago, Illinois.