Helios and Matheson Analytics (HMNY) and Verisign (VRSN) Critical Survey

Helios and Matheson Analytics (NASDAQ: HMNY) and Verisign (NASDAQ:VRSN) are both technology companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Profitability

This table compares Helios and Matheson Analytics and Verisign’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Helios and Matheson Analytics -1,272.83% -2,850.78% -411.49%
Verisign 39.79% -36.88% 17.95%

Institutional and Insider Ownership

1.5% of Helios and Matheson Analytics shares are owned by institutional investors. 29.0% of Helios and Matheson Analytics shares are owned by company insiders. Comparatively, 1.0% of Verisign shares are owned 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.

Volatility and Risk

Helios and Matheson Analytics has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500. Comparatively, Verisign has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500.

Valuation & Earnings

This table compares Helios and Matheson Analytics and Verisign’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Helios and Matheson Analytics $6.76 million 17.43 -$7.38 million ($9.43) -0.88
Verisign $1.14 billion 9.88 $440.64 million $3.70 30.94

Verisign has higher revenue and earnings than Helios and Matheson Analytics. Helios and Matheson Analytics is trading at a lower price-to-earnings ratio than Verisign, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings for Helios and Matheson Analytics and Verisign, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Helios and Matheson Analytics 0 0 1 0 3.00
Verisign 0 3 0 0 2.00

Helios and Matheson Analytics presently has a consensus target price of $25.00, suggesting a potential upside of 202.30%. Verisign has a consensus target price of $106.33, suggesting a potential downside of 7.10%. Given Helios and Matheson Analytics’ stronger consensus rating and higher possible upside, analysts clearly believe Helios and Matheson Analytics is more favorable than Verisign.

Summary

Verisign beats Helios and Matheson Analytics on 8 of the 14 factors compared between the two stocks.

Helios and Matheson Analytics Company Profile

Helios and Matheson Analytics Inc. is an information technology services company. The Company offers its clients a suite of services of predictive analytics with technology. The Company provides offerings in the areas of application value management, application development, integration, independent validation, infrastructure and information management, and analytics services. The Company offers an integrated service of Big Data technology, analytics, domain knowledge in the areas of financial services and healthcare, including data visualization. The Company’s clients operate in a range of industries with a concentration in the banking, financial services, insurance and healthcare industries.

Verisign Company Profile

VeriSign, Inc. is a provider of domain name registry services and Internet security. The Company operates through Registry Services and Security Services segment. Registry Services ensure the security, stability and resiliency of Internet infrastructure and services, including the .com and .net domains, and operation of the root-zone maintainer functions for the core of the Internet’s Domain Name System (DNS). Security Services provides infrastructure assurance services consisting of Distributed Denial of Services (DDoS) Protection Services and Managed DNS Services. DDoS Protection Services supports online business continuity by providing monitoring and mitigation services against DDoS attacks. Managed DNS Services is a hosting service that delivers DNS resolution for the availability of Web-based systems.

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