Hill International (NYSE: HIL) and Verifone Systems (NYSE:PAY) are both business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitabiliy, risk, institutional ownership, dividends, analyst recommendations, valuation and earnings.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Hill International and Verifone Systems, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hill International 0 0 0 0 N/A
Verifone Systems 0 13 2 0 2.13

Verifone Systems has a consensus target price of $18.42, indicating a potential downside of 1.30%. Given Verifone Systems’ higher probable upside, analysts plainly believe Verifone Systems is more favorable than Hill International.

Institutional and Insider Ownership

53.1% of Hill International shares are held by institutional investors. 13.6% of Hill International shares are held by company insiders. Comparatively, 1.2% of Verifone Systems shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Hill International has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, Verifone Systems has a beta of 1.87, meaning that its share price is 87% more volatile than the S&P 500.

Profitability

This table compares Hill International and Verifone Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hill International -5.54% -9.58% -2.32%
Verifone Systems -7.53% 11.55% 3.85%

Earnings & Valuation

This table compares Hill International and Verifone Systems’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Hill International $413.48 million 0.56 $2.18 million N/A N/A
Verifone Systems $1.88 billion 1.11 $198.50 million ($1.27) -14.69

Verifone Systems has higher revenue and earnings than Hill International.

Summary

Verifone Systems beats Hill International on 8 of the 11 factors compared between the two stocks.

About Hill International

Hill International, Inc. is a professional services firm. The Company provides program management, project management, construction management and other consulting services primarily to the buildings, transportation, environmental, energy and industrial markets worldwide. It operates in Project Management Group segment. The Project Management Group segment provides construction and project management services to construction owners worldwide. Its services include project management oversight, troubled project turnaround, staff augmentation, project labor agreement consulting, commissioning, estimating and cost management, labor compliance services and facilities management services. The Company’s clients include the United States federal government, the United States state and local governments, foreign governments and the private sector.

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.

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