Verint Systems (VRNT) and Unisys (UIS) Critical Contrast

Verint Systems (NASDAQ: VRNT) and Unisys (NYSE:UIS) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, earnings, profitability, analyst recommendations, risk, institutional ownership and valuation.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Verint Systems and Unisys, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Verint Systems 0 2 3 0 2.60
Unisys 0 1 1 0 2.50

Verint Systems currently has a consensus target price of $47.60, suggesting a potential upside of 10.06%. Unisys has a consensus target price of $12.00, suggesting a potential upside of 33.33%. Given Unisys’ higher possible upside, analysts clearly believe Unisys is more favorable than Verint Systems.

Valuation and Earnings

This table compares Verint Systems and Unisys’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Verint Systems $1.06 billion 2.60 -$29.38 million ($0.25) -173.00
Unisys $2.82 billion 0.16 -$47.70 million ($2.31) -3.90

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

Profitability

This table compares Verint Systems and Unisys’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Verint Systems -1.41% 9.90% 4.29%
Unisys -4.30% -5.32% 4.06%

Risk and Volatility

Verint Systems has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, Unisys has a beta of 1.86, meaning that its share price is 86% more volatile than the S&P 500.

Insider & Institutional Ownership

93.3% of Verint Systems shares are owned by institutional investors. 1.3% of Verint Systems shares are owned by insiders. Comparatively, 1.4% of Unisys shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Verint Systems beats Unisys on 9 of the 14 factors compared between the two stocks.

Verint Systems Company Profile

Verint Systems Inc. offers Actionable Intelligence solutions. The Company delivers its Actionable Intelligence solutions through two operating segments: Customer Engagement Solutions and Cyber Intelligence Solutions. It is a provider of customer engagement software and services that can be deployed on-premises or in the cloud. Its Customer Engagement vision is powered by its Actionable Intelligence platform to generate intelligence from structured and unstructured data. It offers solutions that help organizations empower their customers and employees through intelligence that can be shared enterprise-wide. It is a provider of security and intelligence data mining software. Its solutions are used for a range of applications, including predictive intelligence, advanced and complex investigations, security threat analysis, and electronic data and physical assets protection, as well as for generating legal evidence and preventing criminal activity and terrorism.

Unisys Company Profile

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.

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