Unisys (NYSE: UIS) and Servicesource International (NASDAQ:SREV) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.
Volatility & Risk
Unisys has a beta of 1.86, suggesting that its share price is 86% more volatile than the S&P 500. Comparatively, Servicesource International has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500.
This table compares Unisys and Servicesource International’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Unisys||$2.82 billion||0.16||-$47.70 million||($2.31)||-3.90|
|Servicesource International||$252.89 million||1.19||-$32.12 million||($0.43)||-7.74|
Servicesource International has lower revenue, but higher earnings than Unisys. Servicesource International is trading at a lower price-to-earnings ratio than Unisys, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and recommmendations for Unisys and Servicesource International, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Unisys currently has a consensus price target of $12.00, suggesting a potential upside of 33.33%. Servicesource International has a consensus price target of $5.25, suggesting a potential upside of 57.66%. Given Servicesource International’s higher probable upside, analysts plainly believe Servicesource International is more favorable than Unisys.
This table compares Unisys and Servicesource International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
68.5% of Servicesource International shares are owned by institutional investors. 1.4% of Unisys shares are owned by insiders. Comparatively, 30.3% of Servicesource International shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Unisys Corporation (Unisys) is an information technology (IT) company. The Company operates through two segments: Services and Technology. The Company offers services, which include cloud and infrastructure services, application services and business process outsourcing services. In technology segment, the Company designs and develops software, servers and related products. The Company provides a range of data center, infrastructure management and cloud computing offerings to help clients virtualize and automate their data-center environments. Its technology offerings include ClearPath Forward software operating system, the Unisys Stealth family of security software and industry-focused software such as Digital Investigator, middleware and servers. Unisys Stealth consists of six solutions: Stealth(core), Stealth(analytics), Stealth(aware), Stealth(cloud), Stealth(identity) and Stealth(mobile). Digital Investigator is a browser-based application for total information management.
About Servicesource International
ServiceSource International, Inc. (ServiceSource) is a provider of customer and revenue lifecycle solutions that power enterprise revenue relationships, partnering with business to business technology and technology-enabled companies. The Company operates through two segments: Managed Services, and Cloud and Business Intelligence (CBI). The Company delivers through service teams and integral cloud-based technologies from its database of service. By integrating managed services, cloud software and data, the Company provides its clients with insights into their end customers businesses, end-to-end management and service-contract renewals process. As of December 31, 2016, it managed approximately 143 engagements across 66 clients. Its solutions are designed to optimize recurring revenue across various revenue models, distribution models and segments, including hardware, software, Software-as-a-Service (SaaS), industrial systems, technology-enabled healthcare and life sciences.
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