Reviewing EPIQ Systems (EPIQ) and Verifone Systems (PAY)
Verifone Systems (NYSE: PAY) and EPIQ Systems (NASDAQ:EPIQ) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitabiliy.
Institutional & Insider Ownership
84.9% of EPIQ Systems shares are held by institutional investors. 1.2% of Verifone Systems shares are held by company insiders. Comparatively, 10.1% of EPIQ Systems shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Verifone Systems and EPIQ Systems’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Verifone Systems||$1.88 billion||1.08||$198.50 million||($1.27)||-14.25|
Verifone Systems has higher revenue and earnings than EPIQ Systems. EPIQ Systems is trading at a lower price-to-earnings ratio than Verifone Systems, indicating that it is currently the more affordable of the two stocks.
This table compares Verifone Systems and EPIQ Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
EPIQ Systems pays an annual dividend of $0.36 per share and has a dividend yield of 2.2%. Verifone Systems does not pay a dividend. EPIQ Systems pays out -83.7% of its earnings in the form of a dividend.
This is a breakdown of current ratings and recommmendations for Verifone Systems and EPIQ Systems, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Verifone Systems presently has a consensus target price of $18.42, indicating a potential upside of 1.75%. Given Verifone Systems’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Verifone Systems is more favorable than EPIQ Systems.
Volatility and Risk
Verifone Systems has a beta of 1.77, meaning that its stock price is 77% more volatile than the S&P 500. Comparatively, EPIQ Systems has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500.
Verifone Systems beats EPIQ Systems on 7 of the 13 factors compared between the two stocks.
About Verifone Systems
VeriFone Systems, Inc. offers payments and commerce solutions. The Company is engaged in designing, manufacturing, marketing and supplying a range of payment solutions and complementary services. It provides solutions and services for the retail point-of-sale (POS) that enable various forms of commerce. The Company’s segments include Verifone Systems and Verifone Services. The Verifone Systems segment delivers point of sale electronic payment devices that run the operating systems, security and encryption software, and certified payment software for both payments and commerce. The Verifone Services segment delivers device-related leasing and maintenance, payment transaction routing and reporting, and commerce based services, such as advertising on digital screens. The Company operates in various sectors, such as financial services, retail, petroleum, restaurant, hospitality, taxi, transportation and healthcare.
About EPIQ Systems
Epiq Systems, Inc. (Epiq) is a provider of professional services and integrated technology for the legal profession. The Company operates in two segments: the Technology segment (Technology), which provides eDiscovery managed services and technology solutions consisting of consulting, collections and forensics, processing, search and review, production of documents and document review services to companies and law firms, and the Bankruptcy and Settlement Administration segment (Bankruptcy and Settlement Administration), which provides managed services and technology solutions that address the needs of its customers with respect to litigation, claims and project administration, compliance matters, controlled disbursements, corporate restructuring, bankruptcy and class action proceedings. Its solutions and professional services cater to a range of client legal matters, including litigation, investigations, financial transactions and regulatory compliance, among others.
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